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McLEOD RUSSEL INDIA LIMITED
Registered Office : Four Mangoe Lane, Surendra Mohan Ghosh Sarani, Kolkata-700 001
NOTICE
Notice is hereby given that the Fifteenth Annual General Meeting of the Members of the Company will be held on Friday, 26th July 2013 at 11.30 a.m. at Kalamandir, 48, Shakespeare Sarani, Kolkata-700 017 to transact the following business :-
1. To receive, consider and adopt the audited Profit and Loss Account (Profit and Loss Statement) for the financial year ended 31st March 2013 and Balance Sheet as at that date together with the Reports of the Directors and Auditors thereon.
2. To declare a dividend for the financial year ended 31st March 2013.
3. To appoint a Director in place of Mr. Brij Mohan Khaitan, who retires by rotation and, being eligible, offers himself for re-appointment.
4. To appoint a Director in place of Dr. Raghavachari Srinivasan, who retires by rotation and, being eligible, offers himself for re-appointment.
5. To appoint a Director in place of Mr. Bharat Bajoria, who retires by rotation and, being eligible, offers himself for re-appointment.
6. To appoint a Director in place of Mr. Ranabir Sen, who retires by rotation and, being eligible, offers himself for re-appointment.
7. To appoint Auditors and fix their remuneration.
By Order of the Board McLEOD RUSSEL INDIA LIMITED
A. GUHA SARKAR Vice President & Company Secretary
Kolkata, Date: 27th May 2013
NOTES:
a) A Member entitled to attend and vote at the Annual General Meeting may appoint a Proxy to attend and vote thereat instead of himself. A Proxy need not be a Member of the Company. Proxies, in order to be effective, must be received at the Company’s Registered Office situated at Four Mangoe Lane, Surendra Mohan Ghosh Sarani, Kolkata-700 001 not later than forty-eight hours before the Meeting.
b) The information as required to be provided in terms of the Listing Agreement with the Stock Exchanges regarding the Directors who are proposed to be re-appointed is annexed.
c) The Register of Members and Share Transfer Books of the Company will remain closed from 18th July 2013 to 26th July 2013 (both days inclusive).
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d) The dividend that may be declared by the Company at the Fifteenth Annual General Meeting will be paid on or after 30th July 2013 (i) to those Members holding shares in physical mode whose names appear on the Register of Members of the Company after giving effect to all valid share transfers in physical form lodged with the Company and its Registrars on or before 17th July 2013. (ii) In respect of the shares held in electronic form the dividend will be paid to the ‘beneficial owners’ of the shares as at the end of business hours on 17th July 2013 as per details provided by the Depositories for this purpose.
e) Dividend in respect of shares held in dematerialised form shall be credited to the beneficial owner’s bank account directly through National Electronic Clearing Services (NECS), wherever NECS facility is available subject to availability of bank account details with 9 digit MICR and 11 digit IFS Code. In case the said details have not been provided to the concerned Depository Participant or there is any change, the same may please be intimated to the concerned Depository Participant immediately.
f) Securities and Exchange Board of India (SEBI) vide its Circular No.CIR/MRD/DP/10/2013 dated 21st March 2013, has mandated usage of electronic mode for making cash payments such as dividend etc. to the investors of Companies whose securities are listed on the Stock Exchanges.
Shareholders holding shares in physical form and desirous of having NECS facility, should provide their bank details and 9 digit code number to the Registrar and Share Transfer Agent of the Company immediately. The shareholders who have already given their bank details should furnish the same only if there is any change.
g) Members who are holding shares in physical form are requested to notify change in address, if any, to the Company’s Share transfer Agent quoting their Folio Number. Shareholders holding shares in dematerialised form, should intimate change of their address, if any, to their Depository Participant.
h) In accordance with the provisions of Section 205C of the Companies Act, 1956 any amount of dividend remaining unpaid or unclaimed for a period of seven years from the date such dividend became due for payment shall be transferred to the investor Education and Protection Fund set up by the Government of India and no claims shall lie against the Fund or the Company in respect of individual amounts so transferred.
Members of the Company and the persons who were the Members of the erstwhile The Moran Tea Company (India) Limited (since merged with the Company) who have not yet encashed their dividend warrant(s) for the financial year ended 31st March 2006 and onwards as applicable, are requested to contact the Company forthwith.
i) The Securities and Exchange Board of India (SEBI) vide Circular Ref.No.MRD/DoP/Cir-05/2007 dated April 27, 2007 made PAN mandatory for all securities market transaction. Thereafter, vide Circular No.MRD/DoP/Cir-05/2009 dated May 20, 2009 it was clarified that for securities market transactions and off market/private transactions involving transfer of shares in physical form of listed Companies, it shall be mandatory for the transferee(s) to furnish copy of PAN Card to the Company/RTAs for registration of such transfer of shares.
SEBI further clarified that it shall be mandatory to furnish a copy of PAN in the following cases:
i) Deletion of name of the deceased shareholder(s), where the shares are held in the name of two or more shareholder(s).
ii) Transmission of shares to the legal heir(s), where deceased shareholder was the sole holder of shares.
iii) Transposition of shares – when there is a change in the order of names in which physical shares are held jointly in the names of two or more shareholders.
j) A Member desirous of getting any information on the accounts or operations of the Company is requested to forward his queries to the Company at least seven days prior to the Meeting so that the required information can be made available at the Meeting.
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PARTICULARS RELATING TO DIRECTORS PROPOSED TO BE RE-APPOINTED
Name of Director MR. BRIJ MOHAN KHAITAN Date of Birth 14th August 1927 Qualification Bachelor of Commerce from Calcutta University Expertise Mr. B. M. Khaitan is a renowned Industrialist having interest in Tea,
Batteries and Engineering. Mr. Khaitan has great contributions to the Tea Industry with which he has been associated for around six decades. He is on the Boards of certain other renowned Companies having diversified business interests.
Directorships held in other Companies (excluding foreign Companies)
Williamson Magor & Co. Limited Eveready Industries India Limited Babcock Borsig Limited CESC Limited Jay Shree Tea & Industries Limited
Committee Memberships in other companies, if any, with position
1. Member of Audit Committee of CESC Limited 2. Chairman of Remuneration Committee of Jay Shree Tea & Industries Limited.
Shareholding in the Company 36,288 Equity Shares of Rs.5/- each.
Name of Director DR. RAGHAVACHARI SRINIVASAN Date of Birth 30th May 1931 Qualification Ph. D. (in Banking & Finance from Bombay University), CAIIB., FIB. Expertise A renowned expert in Banking and Finance, Dr. Srinivasan has held
very senior positions in this field including the Chairmanship of two large nationalized Banks, viz. Bank of India and Allahabad Bank and New Bank of India (which got merged with Punjab National Bank) and of the Indian Bank’s Association, the apex body of the Banking Industry. He advises various corporates in the areas of Banking, Finance and Capital Market. He has to his credit several publications in national and international media as well as prestigious awards in the area of Banking.
Directorships held in other Companies (excluding foreign Companies)
Williamson Magor & Co. Limited Elder Pharmaceuticals Limited J. Kumar Infraprojects Limited Goldiam International Limited Shalimar Paints Limited Shubhalaxmi Polyesters Limited Graphite India Limited Snowcem Paints Pvt Ltd JM Financial Trustee Co Pvt Ltd Nayamode Solutions Pvt Ltd Suchirindia Developers Pvt Ltd New Turn Consulting Pvt Ltd Sunvik Steels Pvt Ltd
Committee Memberships in other companies, if any, with position
1. Chairman of Audit Committee of Shalimar Paints Limited.
2. Chairman of Investors’ Grievance Committee of Elder Pharmaceuticals Limited.
3. Chairman of Remuneration Committee of : (a) J. Kumar Infraprojects Limited (b) Elder Pharmaceuticals Limited (c) Williamson Magor & Co. Limited.
4. Member of Audit Committee of : (a) J. Kumar Infraprojects Limited (b) Elder Pharmaceuticals Limited (c) Graphite India Limited (d) Goldiam International Limited (e) Williamson Magor & Co. Limited.
5. Member of Remuneration Committee of Graphite India Limited. Shareholding in the Company Nil
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Name of Director MR. BHARAT BAJORIA Date of Birth 12th March 1953 Qualification B. Sc. (Hons.) Expertise Mr. Bajoria is associated with tea industry since 1975 and during his
long career for about 4 decades has gathered considerable experience in all aspects of tea plantation business. Mr. Bajoria is the Managing Director of Teesta Valley Tea Co. Limited and The Bormah Jan Tea Co. (1936) Limited and he is having directorships in other companies. As a leader of the Indian tea industry, Mr. Bajoria held in the past, the position of Chairman of Indian Tea Association and Consultative Committee of Plantation Association. Mr. Bajoria was also the Chairman of Darjeeling Planters Association and Special Committee for Generic Tea Promotion in India. Mr. Bajoria is a member of Indian Chamber of Commerce.
Directorships held in other Companies (excluding foreign Companies)
Williamson Magor & Co. Limited Banarhat Investment Co. Private Limited The Bormah Jan Tea Co. (1936) Limited Birdie Trading Private Limited Teesta Valley Tea Co. Limited Teesta Valley Exports Limited McLeod & Co. Limited Speedways International Private Limited Trishul Co. Private Limited Globe (India) Limited Dhunseri Petrochem & Tea Ltd The Budge Budge Investment Co. Private Limited
Committee Memberships in other companies, if any, with position
1. Member of Audit Committee of Dhunseri Petrochem & Tea Ltd. 2. Member of Remuneration Committee of Williamson Magor & Co. Limited.
Shareholding in the Company 1,400 Equity Shares of Rs.5/- each. Name of Director MR. RANABIR SEN Date of Birth 18th October 1945 Qualification Graduate from St. Joseph’s College in Darjeeling. Expertise Mr. Sen joined J. Thomas & Co. Private Limited in 1964 and served
the Company in various capacities at Kolkata and various branches in India and also abroad. He was the key person in setting up the Siliguri Tea Auctions and also the Singapore Auctions. Inducted into the Board of J. Thomas & Co. Private Limited in 1987 and became the Managing Director in 1995 and Chairman in 2001. He retired from J. Thomas & Co. Private Limited as CMD on 31st March 2004. He was an active member of various tea committees including Tea Board.
Directorships held in other Companies (excluding foreign Companies)
DLX Limited
Committee Memberships in other companies, if any, with position
Nil
Shareholding in the Company 133 Equity Shares of Rs.5/- each.
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CULTUREOF
EXCELLENCEMcLeod Russel India Limited | Annual Report 2012-13
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“Tea is not a mere commodity for us. It is heritage based on
values and culture full of sentiments and commitments.”
– B M Khaitan, Chairman
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Contents
Corporate Identity 02 | Organisation Structure 04 | Highlights (Consolidated) 05 | ssenisuB ruO
Model 06 | Our Enduring Strength 18 | Corporate Information 19 | Report of the Directors 20 | Management
Discussion and Analysis 30 | Report on Corporate Governance 33 | Report of the Auditors 45 | Balance
Sheet 50 | Profit & Loss Statement 51 |Cash Flow Statement 52 | 54 Notes on financial Statements
| Consolidated Financial Statement 82 | Details of Subsidiaries 116 | Particulars of Tea Estates 117
M I S S I O N S TAT E M E N T
“ M c L E O D R U S S E L I N D I A L I M I T E D
F O L L O W S T H E T E N E T S O F A G O O D
C O R P O R A T E C I T I Z E N , P R O V I D I N G E Q U A L
O P P O R T U N I T Y T O A L L E M P L O Y E E S ,
I N A S A F E A N D H E A LT H Y W O R K I N G
E N V I R O N M E N T , E N S U R I N G S O C I A L A N D
E C O N O M I C D E V E L O P M E N T T O S U S T A I N
A N D I M P R O V E Q U A L I T Y O F L I F E . I T
I S C O M M I T T E D T O S A F E G U A R D I N G
T H E E N V I R O N M E N T B Y A D O P T I N G A N
E C O - F R I E N D LY , T R A N S P A R E N T A N D
P A R T I C I P A T O R Y A P P R O A C H I N A L L
A C T I V I T I E S W H I L S T E N S U R I N G T H A T T H E
B E S T Q U A L I T Y O F T E A I S P R O D U C E D . ”
– A D I T YA K H A I T A N , M A N A G I N G D I R E C T O R
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63 TEA ESTATES. 62 FACTORIES. 4 COUNTRIES. 38758 HECTARES. 87000 EMPLOYEES. THIS COMBINATION MAKES MCLEOD RUSSEL INDIA LIMITED (INCLUDING SUBSIDIARIES) THE LARGEST PRIVATE SECTOR TEA PLANTATION COMPANY IN THE WORLD ACCOUNTING FOR 8 PER CENT OF INDIA’S TEA OUTPUT AND 2 PER CENT OF ALL THE BLACK TEA GROWN IN THE WORLD.
Lineage McLeod Russel India Limited (MRIL)
is a member of the Williamson
Magor Group engaged in the
business of tea production for over
140 years.
Effective April 2004, the Bulk Tea
Division of Eveready Industries
India Limited, another Company of
the group, demerged to become
McLeod Russel India Limited
to enhance its focus on the tea
plantation business.
In July 2005, McLeod Russel
acquired Borelli Tea Holdings
Limited, UK, gained control over its
subsidiary Williamson Tea Assam
Limited, owning 17 tea estates in
India. In 2006 and 2007, McLeod
Russel acquired Doom Dooma Tea
Company Limited and the Moran
Tea Company (India) Limited. All
acquired companies were merged
with McLeod Russel between 2006
and 2008.
Borelli acquired 100% control of
Phu Ben Tea Company Limited
of Vietnam in March 2009 and
McLeod Russel Uganda Limited in
January 2010 and 60% of Gisovu
Tea Company Limited of Rwanda
in February 2011. Borelli formed
another subsidiary called McLeod
Russel Middle East DMCC in Dubai
in 2011 engaged in tea trading and
blending activities.
ManagementMcLeod Russel represents a balance
of proprietary and professional
interests. The Company is managed
by a Board of Directors comprising
Mr. Brij Mohan Khaitan (Chairman),
Mr. Deepak Khaitan (Vice Chairman),
Mr. Aditya Khaitan (Managing
Director), three Wholetime Directors
and six Independent Directors.
ListingThe shares of the Company are
listed on Calcutta (CSE), Bombay
(BSE) and National (NSE) Stock
Exchanges. The Company enjoyed
a market capitalization of Rs.3828
crore as on 31st March 2013.
Business The Company is engaged in the
cultivation, processing and sale of
tea. It produces CTC and Orthodox
black tea. CTC teas account for
nearly 90 per cent of its production,
the rest being the Assam Orthodox
variety.
The Company (including
CORPORATE IDENTITY
McLeod Russel India Limited
subsidiaries) produced 102 million
kgs of tea in 2012-13making it
one of the largest global black tea
exporters.
The Company established a
state-of-the-art tea blending facility
at Nilpur (Assam) to cater to the
growing demand for bespoke blends
of the Company’s own teas from
India.
McLeod Russel Middle East DMCC,
a subsidiary, was established in
Dubai in 2011 to serve as a trading
and marketing hub for multi-origin
blends emerging from the Group’s
estates in India, Vietnam and Africa.
It provides solutions to customers
looking for teas in straight line,
blended or value added forms.
Location MRIL is headquartered in Kolkata
(India) with 38,758 hectares under
global tea cultivation.
The plantations of the Company
(and subsidiaries) comprise 53 Tea
Estates in India (48 in Assam, 5 in
West Bengal), 3 in Vietnam, 6 in
Uganda and 1 in Rwanda.
The Company and its subsidiaries
export teas to 23 countries covering
all continents .
Accreditations and awardsMcLeod Russel’s internationally
respected accreditations and
certifications enhance its export
footprint and realisations.
The certifications comprise Fairtrade,
Rainforest Alliance, Hazard Analysis
Critical Control Point (HACCP), Ethical
Tea Partnership and International
Organisation for Standardisation
(ISO 22000), extending across a
number of tea estates.
McLeod Russel was voted India’s
Best Managed Small Cap Corporate
2009 by ASIA MONEY for its
commitment to quality, acquisitions
and growth.
Annual Report 2012-13 32
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OUR ORGANISATION STRUCTURE
McLeod Russel India Limited
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PERFORMANCE HIGHLIGHTS
(CONSOLIDATED)
Saleable production (million kgs)
EBIDTA margin (as a % on Sales)
Sale of Tea (Rs. in Lakhs)
Net Worth (Rs. in Lakhs)
Profit after tax (Rs. in Lakhs)
Return on Net Worth (%)
08
-0
97
4.8
5
09
-10
81.
61
10-
119
6.2
7
11-
1210
2.9
1
12-
1310
2.0
0
08
-0
92
5.3
8
09
-10
33
.26
10-
113
0.7
6
11-
122
8.4
8
12-
132
4.2
6
08
-0
98
26
77
.08
09
-10
110
33
5.8
6
10-
1112
37
00
.36
11-
1214
112
6.3
6
12-
1316
26
90
.38
08
-0
96
24
20
.48
09
-10
80
163
.42
10-
119
52
35
.92
11-
1211
86
42
.63
12-
1313
92
46
.69
08
-0
98
56
4.5
6
09
-10
23
37
0.1
2
10-
112
49
20
.38
11-
122
94
25
.69
12-
132
82
11.3
0
08
-0
913
.72
09
-10
29
.15
10-
112
6.1
7
11-
122
4.8
0
12-
132
0.2
6
Annual Report 2012-13 54
McLeod Russel India Limited
Good agricultural practices
Selective clonal policy developed
over the years of cutting-edge R&D
Strict maintenance of plucking
rounds
Production of quality raw material
(high fine leaf component)
Good green leaf handling and
transport
Uprooting and replanting @ 2% per
year (since 1994)
Productive age profile; 40% of area
under 25 years
Average yields in India at 2000 Kg/
Ha (industry average 1700 Kg/Ha)
Good manufacturing practices
Robust manufacturing policy
Capacity geared for peak crop
All factories HACCP certified
Standardisation of global
factories
Complete compliance on product
safety, traceability and product recall.
Standardisation of practices via our
Policy Manual.
Manufacturing policy formulated
by the legendary John Trinick (tea
technologist declared National
Treasure of UK by the Queen of
England).
Unique HR policy Workplace governed by a healthy
and safe work environment.
Minimal employee attrition rate
(< 3%).
Leadership and personnel
development including succession
plan.
Internal growth of human
resources (no external recruitment
in the middle and senior levels).
Training, best practices and
exchange through exposure visits to
global plantations.
Transparent reward and
recognition policy.
High value quality tea Business plan through effective
discussions.
Targets (commercial and personal
development) covered by KPIs
Mid-term target review to
discourage wrong/irregular
behaviour
Transparent performance
evaluation
Sustainable produce Soil conservation and
management
Water conservation with an
emphasis on rain water harvesting
Integrated pest and weed
management
Afforestation and preservation of
natural habitat
Prudent energy conservation
Waste management and disposal
CSR – a way of life Extension of health facilities/
services to neighbouring
communities.
Creation of an educational
institution (Assam Valley School).
Promotion and recognition of
literary / scholastic pursuits.
Economic empowerment for local
/ neighbouring communities
Vocational training for
communities in and around estates.
Annual Report 2012-13 76
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CULTURE OF EXCELLENCE
PLANTATIONIn the business of tea plantations, sustainable success is derived from the ability to extract the largest quantity of the best quality from a given area.
McLeod Russel has demonstrated this ideal through an enduring culture of
excellence, generating superior teas (accounting for 2 per cent of all the black tea
grown in the world) from nearly 39,000 hectares the world over.
Excellence driversAt McLeod Russel, the road to
plantation excellence is paved with
diverse challenges. Even as the
business of tea growing was always
subject to climatic unpredictability, this
downside has increased significantly
over the last couple of decades. Global
warming and deforestation have
resulted in pest attacks, extended
droughts and unexpected cloudbursts,
warranting unprecedented plantation
preparedness.
McLeod Russel has responded to this
reality through an overarching culture
of excellence (63 estates in four
countries) reflected in the following
initiatives:
Lifecycle: At Mcleod Russel, we have
created a foundation of plantation
excellence through a nursery in each of
our gardens. This nursery commences
from hands-on bush management
to a time six to seven decades later
when the full-grown bush is ready for
replacement. This lifecycle approach
THE RESULT OF OUR PLANTATION EXCELLENCE IS THAT 40% OF OUR GARDENS ARE LESS THAN 25 YEARS OLD WITH YIELDS SIGNIFICANTLY HIGHER THAN THE INDUSTRY AVERAGE
makes it possible to provide the right
bush type for the right terrain and
climate leading to timely maturity,
robust growth, attractive yield and
optimum life.
Replenishment: The Company
practices a discipline to uproot
around 2% of its aggregate bush
population each year, replenished
with a blend of new tea bushes
(high quality or high quantity). The
Company uprooted a cumulative
8000 hectares from 1995-96
onwards.
Plucking technique: The
effectiveness of the Company’s
plantation excellence is also
derived from a seven-day plucking
discipline, which ensures that one of
seven segments of the Company’s
garden is plucked on a specific
day, generating optimum leaf size.
Nearly 70 per cent of the company’s
plucking during the peak season
corresponds to this seven-day
cycle with leaf size and quality
implications.
Emergency preparedness:
The Company has progressively
strengthened its preparedness
against global warming through an
extensive irrigation network, natural
in-plantation reservoirs that pool
rainwater as an insurance against
drought, as well as competent
drainage management that makes
it possible for rain water to drain
easily into rivers without backflow.
SOP culture: At the heart of the
Company’s plantation excellence
lies a Policy Manual, which is
a documentation of standard
operating procedures generally
followed to manage a variable
plantation-based business
with consistency, efficiency and
predictability. Every existing or
probable risk is documented with
recommended risk management
initiatives, periodically reviewed by a
committee.
Environment conscious: The
Company is in a sensitive business
where the end product needs to
be pest-protected through the
responsible use of chemicals
and where the end product needs
to have minimal chemical residue
so that it can be consumed by
people. The company has reconciled
this balance through a complete
compliance with EU norms on
pesticide use; the company uses
soft pesticides wherever needed;
in the event that hard pesticides are
selectively used, the Company
ring-fences that area’s produce out
of commercial circulation.
Excellence outcome The result of this plantation
excellence is that 40% of the
Company’s gardens are less than
25 years old with yields significantly
higher than the industry average;
nearly 75% of the Company’s bushes
are less than 50 years old, a period
when they are most productive and
resistant to natural vagaries.
Annual Report 2012-13 98
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CULTURE OF EXCELLENCE
PRODUCTIONIn the business of tea manufacture, profitable growth is achieved from the ability to process and
produce superior teas that sell the quickest and fetch attractive realisations.
Mcleod Russel has demonstrated just such a capability across a throughput of 102 million kgs of
saleable tea (2012-13) derived from its complement of 62 factories across 63 gardens in four countries.
The result is that our quality indicates a sustainable ability to produce quality teas free from contaminants… and not just a cup of tea.
Excellence drivers Complement:
At McLeod Russel, we have
balanced our garden throughput
with corresponding processing
capacity, as a result of which
we process 100 per cent of our
grown leaf; we have 46 factories
for 47 Assam estates and five
factories for five Dooars estates;
these factories are proximate
enough to bring the tea into
the factory within the shortest
possible time to retain freshness.
Processing: Given the seasonal
nature of the business as a
result of which 60% of the annual
tea crop is plucked in a third
of the year (July to October),
the Company has invested in
corresponding peak load tea
processing capacity. Besides, the
processing schedule is structured
to liquidate the day’s plucked tea
inventory within a day, ensuring
that the tea retains its desired
characteristics on the one hand
and the company liquidates its
plucked inventory by day-end.
Capability: The Company
leveraged in-house engineering
competence to upgrade a
number of factories a year with
extensive equipment leading
to enhanced efficiency; this
replacement discipline has
translated into equipment
youthfulness; gains from their
efficient use have far exceeded
the cost of their periodic
replacement.
Efficiency: In a business where
the raw material has a perishable
shelf-life, the key lies in being
able to operate factories at a
high asset utilization to address
peak throughput; the Company’s
factories reported a 90-95%
average utilization during the year
under review; 80% of the factories
were covered by captive power
generation (DG sets) to counter
downtime.
Pioneers: The Company pioneered
the vacuum packing technology
to retain processed tea freshness
leading to premium realizations
and quicker offtake; this technology
is now in use across 15 of the
company’s 63 estates.
Automation: The Company
works closely with tea processing
equipment manufacturers to
customise equipment innovatively
as per the company’s specific
needs translating into attractive
gains in productivity and quality.
Process in process: The Company
has progressively strengthened
its manual-based approach to
manage factories across locations,
which eliminates uninformed
human interventions on the one
hand and increases a worker’s
learning curve on the other.
Certifications: The Company’s
quality-management practices
are showcased in its international
certifications i.e. FAIRTRADE
Mark, Rainforest Alliance, Hazard
Analysis Critical Control Point
(HACCP), Ethical Tea Partnership
and International Organization for
Standardization (ISO 22000) which
enhances buyer confidence.
Excellence outcomeThe result of the Company’s
culture of factory-based
excellence is reflected in the fact
that maximum of the Company’s
teas were produced within the
standard processing schedule
(with corresponding quality and
throughput implications).
Highlights, 2012-13The Company was faced with
the challenge of additional
worker recruitment, training
and retention. The company
was required to manage
drainage initiatives to counter
backflow from rivers and
widen its irrigation network.
The Company invested
in modernising irrigation
equipment to adapt to the
changing climate and longer
dry span. The company
also invested in additional
processing machinery
towards achieving a complete
on-line (continuous)
manufacturing process. It
invested in additional garden
mechanization (withering,
fermenting and machine
plucking).
Produced 102 mn kgs of
saleable tea.
Vietnam gardens increased
production from 5.4 million
kgs in 2012 to 5.9 million kgs
in 2013.
Undertook technological
upgradation in factories across
the globe to enhance process
efficiencies.
Annual Report 2012-13 1110
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CULTURE OF EXCELLENCE
MARKETINGIn the business of tea, sustainable growth is achieved through a focus on sustainable qualitative performance
At McLeod Russel, profitable growth through tea marketing is achieved by the ability to map customer palates,
back-ended by a deep understanding of the quality potential deliverable by each estate. This is combined with
world class service catered to specific customer needs and generate optimum realizations.
The Company has demonstrated this capability consistently over the years. In 2012-13, McLeod Russel exported
about a third of its production and generated 36 per cent of its revenues from overseas clients who have been
buying the company’s teas for a number of years.
Excellence drivers Reputation: The Company’s
annual export of 25 mn kg of tea
represents approximately 13%
of the country’s total tea export.
The company produces premium
quality teas in full compliance
with national/ international
compliance norms and food
safety standards, generating
optimum realisation on account
of these attributes.
Extensive marketing network:
The Company markets its teas
through a combination of direct
service and an extensive network
of agents, both domestic and
international. These service
agents are handpicked for their
reputation, marketing capability,
sectoral knowledge and sound
financials. Through its direct
marketing and agency network,
the company is able to reach
a wide customer base, spread
across 20 Indian states and 23
countries.
Brand preference: The Company
markets teas under the name
of its various tea estates known
as ‘selling marks’. As a result of
the high quality and compliance
standards maintained over the
years, these selling marks have
evolved into individual bulk tea
brands with a strong customer
following in each of their preferred
markets. The company’s selling
marks have now been trademarked
for brand protection.
Product portfolio: The Company
has an extensive portfolio of
teas catering to a wide section
of various markets. This includes
quality and value Assam CTC teas
as well as high value Orthodox
teas and quality Dooars CTC teas.
The Company has enhanced
the production of its high value
Orthodox teas by over 50 percent
and has upgraded its medium
quality Assam and Dooars CTC
teas over the last few years,
thereby adding value to its
portfolio.
Direct marketing: The Company
has progressively increased
the proportion of tea marketed
directly through strategic and
private contracts in national
and international markets,
generating higher realizations and
safeguarding the company against
cyclical market trends.
Spread: The Company’s objective is
to expand its presence in domestic
and global markets in line with its
growing production base.
Trust: The Company has developed
strong customer trust by providing
teas which conform to national
and international food safety and
compliance norms, specific to each
country of import.
Value-added services: The
Company has created a culture
of in-house blending excellence,
which calibrates leaf appearance,
liquor and aroma in a consistent
manner in the final product to
address wide-ranging customer
needs. The Company also provides
customers with just-in-time and
round the year deliveries as well as
cost saving logistics innovations.
Excellence outcome The strength of the Company’s
marketing excellence is reflected
in a growing annual off-take of
branded teas in the domestic and
international arena.
Annual Report 2012-13 1312
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CULTURE OF EXCELLENCE
GOVERNANCE
In a plantation business, there is a need to strengthen governance
with the objective to protect stakeholder interests.
At McLeod Russel, we recognise that we are custodians of the
investments made by our various stakeholders. Only an embedded
governance ethic can address their diverse interests in an ongoing way.
The Company’s primary governance-strengthening capability lies
in mitigating its extensive weather-dependence through various
initiatives leading to financial stability.
THE COMPANY PRE-SELLS NEARLY 70 PERCENT OF ITS EXPORT VOLUMES AND 40 PERCENT OF ITS DOMESTIC SALES, SECURING REALIZATIONS
De-riskingPre-sale: As a hedge against
unforeseens, the Company
pre-sells nearly 70 percent of its
export volumes and 40 percent
of its domestic sales, securing
realizations.
Multi-climatic profile: The
Company recognised the potential
downside of a business model
where 100 percent of its revenues
were derived from a single region
(NE India) with all corresponding
climatic, social, geographic and
political risks; within four years, the
quantum of NE Indian revenues as
a proportion of the overall revenues
was moderated to 75 per cent .
Multi-geography: Over the years,
the company broad-based its
garden presence across India,
Uganda, Rwanda and Vietnam.
Within Assam, half the Company’s
gardens are in Upper Assam and
half in Lower Assam (as against a
65-35 presence for the rest of the
Assam tea industry) and five of the
company’s estates were across the
Dooars.
Excellence outcome The multi-climatic profile,
multi-geographic nature of
gardens, international buyers and
stronger regulatory compliance
strengthened the business model,
making it possible for the Company
to resist sectoral downtrends better
and capitalise on sectoral rebounds
faster.
Annual Report 2012-13 1514
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CULTURE OF EXCELLENCE
PEOPLEOur HR policies are driven by empathy where each individual is considered a family
member, contributing to the Company’s growth with integrity and passion.
In the business of tea plantations, the ability to manage diverse sectoral realities comes
down to one overarching competence - knowledge.
At McLeod Russel, we enriched our sustainability through an institutionalised body
knowledge with the conviction that the richer this knowledge, the better our performance.
THE COMPANY IS THE LARGEST SINGLE EMPLOYER (87,000 EMPLOYEES, 2012-13) IN THE GLOBAL TEA PLANTATION SECTOR.
Excellence driversPromoter-professional interests:
The Company enjoys hands-on
promoter engagement on the one
hand and extensive delegation to
professionals on the other
People: The Company is the largest
single employer (87,000 employees,
2012-13) in the global tea
plantation sector. This represents
a competitive advantage at a time
when global plantation labour
availability has been declining.
Provisions: The Company provides
plantation employees with social
supports (housing, electricity,
school, hospital, worship places)
in complete compliance with the
Labour Plantation Act, which has
helped evolve the plantation into a
self-contained quasi-village.
Extra-statutory compliance: The
Company has extended beyond
statutory requirements to create
and manage full-fledged hospitals
within its each plantation areas
along with four central hospital
(equipped with modern technology),
which also cater to external
patients.
Local recruitment: The Company
practices a culture of trust;
following the acquisition of the
Uganda and Vietnam gardens,
the Company selected to induct
Indian competence only to replace
expatriates while the rest of
the local team was empowered
to grow in their roles in the
Company.
Work-life balance: The Company
practices a work-life balance;
there are six golf courses across
its plantations; a weekly Club Day
(football, tennis and golf) brings
various plantation managers
together; a workers’ club supports
sports (cricket, football, basketball
etc.) among the worker group and
children; the Company supports
cultural activities to help workers
retain their cultural identities; it
arranges monthly film shows
in each estate for employees; it
created a children’s sports school
programme.
Knowledge: The Company rotates
managers across gardens at least
every five years or so, broadening
their terrain knowledge .
Community support: The Company
spends a sizeable amount every
year in meeting its Corporate
Social Responsibility (covering
education, housing, medical, health
and hygiene). The Company is also
engaged in the education sector
through support to a number of
Assam schools (including the
commissioning and management
of Assam Valley School through
a trust). The Company has also
extended its support to LP schools
organise sporting meets for
children, cultural programs and
other activities.
Excellence outcome The result of this people-centric
excellence is that manager attrition
has been less than 1% coupled with
an average employment tenure
executive of 15 years. The Company
reported among the industry’s
highest labour productivity
standards of 27 kg per person
day (industry average of 18 kg per
person day).
Annual Report 2012-13 1716
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23.68% (2006-07)EBIDTA margin
(as % of Sales)
38,620.08 Net debt
as on 31.03.07
(Rs. in Lakhs)
2.90 (2006-07)
Net interest
coverage ratio
0.70 (2006-07)
Net gearing
Long Term: ‘A-’,
Short Term: ‘A1’
Credit rating, ICRA,
2008-09
14.41% (2006-07)
ROCE
24.26% (2012-13)EBIDTA margin
(as % of Sales)
19,038.88 Net debt
as on 31.03.13
(Rs. in Lakhs)
11.79 (2012-13)
Net interest
coverage ratio
0.17 (2012-13)
Net gearing
Long Term: ‘AA’,
Short Term: ‘A1+’
Credit rating, ICRA,
2012-13
22.38 % (2012-13)
ROCE
OUR ENDURING EXCELLENCE CULTURE HAS
MADE US ONE OF THE MOST VALUABLE TEA PLANTATION COMPANIES IN THE WORLD
McLeod Russel India Limited
DISCLAIMER: With a view to enabling the Members of the Company to understand the Company better, certain information has been provided in page Nos.1 to 17 of this Annual Report, which is not purported to be a part of any statutory disclosure. The estimates mentioned and assumptions made therein and the particulars relating to the market and the industry contained therein have been based on information gathered from various published and unpublished reports and their accuracy, reliability and completeness cannot be assured.
Corporate information
Board of Directors Brij Mohan Khaitan Chairman
Deepak Khaitan Vice-Chairman
Aditya Khaitan Managing Director
Raghavachari Srinivasan
Bharat Bajoria
Ranabir Sen
Utsav Parekh
Srikandath Narayan Menon
Ramni Nirula
Rajeev Takru Wholetime Director
Azam Monem Wholetime Director
Kamal Kishore Baheti Wholetime Director & CFO
Company Secretary Amitabha Guha Sarkar
Board CommitteesAudit Committee Raghavachari Srinivasan Chairman
Bharat Bajoria
Ranabir Sen
Srikandath Narayan Menon
Shareholders’/Investors’ Grievance Committee Ranabir Sen Chairman
Bharat Bajoria
Utsav Parekh
Remuneration Committee Bharat Bajoria Chairman
Raghavachari Srinivasan
Ranabir Sen
AuditorsPrice Waterhouse
Plot No.Y-14, Block-EP, Sector-V
Salt Lake Electronic Complex, Bidhan Nagar, Kolkata-700091
Registered OfficeFour Mangoe Lane
Surendra Mohan Ghosh Sarani
Kolkata – 700 001
Phone: (033) 2210-1221/2243-5391/2248-9434/35
Fax: (033) 2248-8114 / 2248-3683
E-mail: administrator@mcleodrussel.com
BankersAllahabad Bank
Axis Bank Ltd.
HDFC Bank Ltd.
ICICI Bank Ltd.
State Bank of India
State Bank of Bikaner and Jaipur
UCO Bank
United Bank of India
SolicitorsKhaitan & Co LLP
RegistrarMaheshwari Datamatics Pvt Ltd.
6, Mangoe Lane, 2nd Floor
Surendra Mohan Ghosh Sarani, Kolkata-700001
TEL: (033) 2243-5809/2243-5029
FAX: (033) 2248-4787
E-mail: mdpl@cal.vsnl.net.in
Annual Report 2012-13 1918
REPORT OF
THE DIRECTORS
For the financial year ended 31st March 2013
Your Directors have pleasure in presenting the Annual Report with the audited Accounts of your Company, for the financial
year ended 31st March 2013.
Review of performanceThe financial Results of the Company for the year ended 31st March 2013 are summarized below:
2012-13 2011-12
Profit before finance costs, depreciation, exceptional Items
and Taxation
33245 34713
Less : Finance costs 4478 4724
Less : Depreciation and amortisation expenses 2872 2940
Profit before exceptional items and tax 25895 27049
Less : Exceptional items 233 1382
Profit before tax 25662 25667
Tax expense : Current tax 4965 5150
Less : MAT credit (1780) (1022)
Provision/(Write back) relating to earlier years (592) (607)
Deferred tax 499 119
Profit for the year 22570 22027
Balance brought forward from previous year 10181 10099
Balance available for appropriations 32751 32126
Proposed dividend 7662 6567
Tax on proposed dividend 1302 1065
Transfer to general reserve 11000 14313
Balance carried forward 12787 10181
Rs. in lakhs
McLeod Russel India Limited
The Board is pleased to report that despite loss of crop
during the year under review your Company earned higher
Sales Revenue of Rs.137802 lakhs as against Rs.123783 lakhs
earned in the previous year. This was possible for higher price
realisation per kg. of tea produced by the Company. Profit after
tax was also higher at Rs.22570 lakhs as against Rs.22028
lakhs in the previous year. The profit would have been higher
but for steep rise in some input costs like employee expenses
and power and fuel.
DividendYour Directors are pleased to recommend for approval
of the shareholders a dividend of Rs.7/-per equity share
on 10,94,55,735 fully paid up equity shares of Rs.5/- each
being 140% on the paid up value of the equity shares of the
Company for the year ended 31st March 2013 as against 120%
(Rs.6/- per share) paid for the earlier year.
Review of operationsDuring the Financial year under review, your Company
produced 782 Lakh Kgs tea as compared to 793 Lakh Kgs
in the previous year. Unfavorable weather, with early season
drought and thereafter excessive rain with low temperature
during the peak harvest months contributed towards the
decline in Crop.
The Uprooting and Replanting Policy of your Company has
further improved the profile of tea under fifty years which
now stands at approximately 75% of the area. All tea Estates
have established good Clonal Tea nurseries with requisite,
approved Clonal Blend. The shade nurseries are also of a
good standard.
It has always been Your Company’s focus to produce quality
teas, which continued to command a premium both in
the domestic and international market. As part of an up-
gradation and modernization programme of factories
withering capacity was increased on seven estates. One
Withering Machine is being put on trial. Ten Rotorvane feeders,
eleven Rotorvanes, fifteen CTC machines, twelve CFM’s,
eight VFBD’s, three coal stoves, two boilers, twenty three
Milling machines, sixteen lathe machines were purchased
and installed in various factories. In some factories civil
construction work was undertaken to install additional sorting
machinery. To improve and monitor quality three colour
sorters for Orthodox sorting were purchased. One Vacpac
machine and thirteen De-humidifiers for the tea storage bins
were installed. To augment the standby generating capacity
fifteen diesel generating sets, five Gas generating sets, ten
cooling towers for generating sets and nine new transformers
were also installed. For making river embankment and for
deepening of outlet drains two new JCB Excavators were
purchased. To facilitate weighment and recording of bought
leaf six weighbridges, ten easy log based weighment system
were commissioned. For Field operations one hundred forty
six plucking machines and eighty three pruning machines
were purchased. With changing weather pattern, additional
irrigation equipment was augmented on eighteen Estates.
Transport fleet was upgraded on Estates with the purchase of
twenty nine new tractors.
The Company’s HACCP certified factories are all in the process
of being upgraded to ISO 22000. Your Company also has four
estates certified as “Fairtrade” and fourteen estates certified
as “Rainforest Alliance.” The Nilpur Blending Unit is a HACCP
Certified unit. An additional twenty one Estates are being
prepared for Rainforest Alliance Certification.
The average price realization for the Company’s tea for the
year was Rs. 171/- per kg. as compared to Rs.150/- realized
in the previous year.
The Company saw a total export quantum (both Direct as well
as Deemed) of 251 lakh kgs in 2012-13 with an overall turnover
of Rs. 47938 lakhs. Favourable feedback was received from
the buyers both in terms of quality and deliveries.
Subsidiary Companies and Consolidated Financial StatementsThe Company has one wholly owned subsidiary namely,
Borelli Tea Holdings Limited, U.K. (Borelli) and five step down
subsidiaries. Borelli is inter alia engaged in the business
of investing funds in various Companies engaged in tea
production, blending, marketing and investment activities.
Annual Report 2012-13 2120
As at the end of the year on 31st March 2013 Borelli had the
following subsidiaries in different countries:-
(i) Phu Ben Tea Company Limited, Vietnam –controlling stake
of Borelli being 100%
(ii) Rwenzori Tea Investments Limited, Uganda – controlling
stake of Borelli being 100%
(iii) McLeod Russel Uganda Limited – 100% subsidiary of
Rwenzori
(iv) Gisovu Tea Company Limited, Rwanda – controlling stake
of Borelli being 60%
(v) McLeod Russel Middle East DMCC – controlling stake of
Borelli being 100%
Borelli has set up a new Company in Kenya known as
McLeod Russel Africa Limited which was granted Certificate
of Incorporation on 20th May 2013. This Company initially
proposes to engage itself in Tea Trading activities in Africa.
Olyana Tea Holdings LLC, a step-down subsidiary of the
Company in USA was closed in the year under review for not
having any business activity.
In accordance with the general circular issued by the Ministry
of Corporate Affairs, Government of India, the Balance
Sheet, Profit and Loss Account and other documents of the
subsidiary companies are not being attached with the Balance
Sheet of the Company. The Company will make available the
Annual Accounts of the subsidiary companies and the related
detailed information to any member of the Company who
may be interested in obtaining the same. The annual accounts
of the subsidiary companies will also be kept for inspection
at the Registered Office of the Company and that of the
respective subsidiary companies. The Consolidated Financial
Statements presented by the Company include the financial
results of its subsidiary companies. A Statement containing
brief financial details of the subsidiary companies is included
in the Annual Report in the Chapter containing Consolidate
Financial Statements. The performance of the major
subsidiaries are summarized below for your information.
As required under the Listing Agreement with the Stock
Exchanges, Consolidated Financial Statements of the
Company, its five subsidiaries and one Associate Company
namely D1 Williamson Magor Bio Fuel Limited prepared
in accordance with the applicable Accounting Standards
issued by The Institute of Chartered Accountants of India are
attached.
Borelli Tea Holdings LimitedBorelli Tea Holdings Limited (Borelli) has invested in its
subsidiaries in Vietnam, Uganda, Rwanda and Dubai. During
the year ended 31st March 2013, Borelli has achieved higher
profit after tax equivalent to Indian Rs.3876 lakhs as compared
to Rs.2937 Lakhs earned in the earlier year. Its Board has
recommended payment of dividend at the rate 300% on its
equity capital held by your Company.
Phu Ben Tea Company LimitedDuring the financial year of the Company ended 31st
December 2012, Phu Ben Tea Company Limited (Phu Ben)
earned a net profit equivalent to Indian Rs.427 Lakhs on a
sales turnover equivalent to Rs.6468 Lakhs.
Phu Ben achieved a total production of 58.97 lakh kgs. and
made sales & shipment of 62.46 lakh kgs. with average selling
price of USD 1.95/kg which was 10% higher than last year.
Total production from plantations was 43.81 lakh kgs. with
average yield of 2,911 kgs/hectares - another record in terms
of quantity and yield. Implementations of improved field
and cultural practices and favourable weather conditions
contributed to this achievement. Purchased leaf production
at 18.52 lakh kgs. is an increase by 24% over previous year.
Capacity expansion of factories by installation of an additional
CTC line at Phu Tho, Ha Hoa and Doan Hung has improved
the operational efficiency and contributed to increase in
production
The company continues to lay stress on quality control in both
field and factory and adheres to GAP for plantation activities,
along with IPM for pest control.
All Phu Ben estates, with an exception of Van Linh factory, are
accredited with Rainforest Alliance, ISO 9000: 2008 and ISO
22000: 2005, GMP & Halal.
McLeod Russel India Limited
The Company, which has a dedicated working team of 4,405
farmers, workers and staffs, was recognised for its effort and
contribution in 2012 as a Model Business Enterprise in Phu Tho
province and a Prestigious Exporter by Ministry of Industry &
Commerce. In addition, Phu Ben Tea Company was awarded
for special achievement and contribution to the development
of Vietnam Tea Industry and for good implementation of tax
policies by Phu Tho province.
McLeod Russel Uganda LimitedDuring the financial year of the Company ended 31st
December 2012, McLeod Russel Uganda Limited (MRUL)
earned a post tax profit equivalent to Indian Rs.6261 Lakhs
as against Rs.7949 lakhs in the year 2011. The production
during the year was 156.30 lakh kgs. compared to 162.50 lakh
kgs. during the previous year, recording a decline of 6.2 lakh
kgs. However, the sales realisation was higher at USD 2.06
per kg. as compared to USD 1.95 per kg. realised in 2011. The
reduction in profit was primarily due to lower production in
2012. The Company has declared a dividend equivalent to
Indian Rs.2584 lakhs against a dividend equivalent to Indian
Rs.2301 lakhs declared in the earlier year.
The year 2012 began with a promising start on account of
good rainfall in the last few months of the previous year.
Towards end January however commenced the advent of
extreme dry conditions not witnessed since the drought of
2006. The drought intensified and lifted only towards early
April. With the onset of delayed rains, crops picked up and
all locations registered steadily rising levels. The years finish
was strong and MRUL was able to achieve a yield of 3867
kgs/hectares, positioning itself as 2nd highest among all tea
companies in East Africa; a creditable accomplishment in a
difficult year starting with severely inclement weather. Bought
leaf production was scaled down by 10% to allow development
at Ankole factory.
Developments in Machine harvesting continued as planned
with Single Operator Harvesters covering 17% of area, up from
7% in previous year. Machine pruning was further strengthened
and all estates moved up to a 4 year pruning cycle without
recourse to crop control. In-house trails permitted the
reduction of fertilizer application with resultant environmental
and financial benefits. Extension planting covered 27 hectares
at 2 locations and a clonal blend was introduced. Eucalyptus
extension covered 24 hectares within grant area and an
additional 6 hectares on out grower holdings.
Two factory projects, commenced in the first year of
company’s operations, were completed in time for the
season under review and maximum benefit was gained from
equipping of these plants with new processing machinery. In
addition old mono-rails were replaced at 3 other locations.
Stand-by power augmentation reduced down time and
plants were geared for more efficient processing with the
institutionalization of Low Season Machinery Maintenance.
Forward sales registered increased volumes and acceptance
levels. Additional 3rd Line Factory project with Withering
Troughs upgrade was undertaken at Ankole and progressed
to near completion. This will enable additional bought leaf
intake in years to come.
Vehicle replacement and Workers housing, conservancy
and facilities continued with momentum developed in the
initial year of operations. A Nursery School was completed
at Mwenge and measures for augmenting water supply,
rain-water harvesting and energy conservation continued.
Rainforest Alliance and ISO 22,000 standards were
maintained and Fairtrade certification applied for and audit
undertaken in respect of Mwenge and Bugambe Tea Estates.
Acquisition of customary tenure land from holders
neighboring Kisaru Division for tea extension process
commenced and is now advancing to stage of land lease
approved by District Land Boards.
Terms and Conditions of Service for unionisable employees
were reviewed with NUPAW and revised for a term of
2 years. Sporting and Cultural activities continued and
industrial relationships remained cordial at all times.
Training programmes, including industrial safety orientation,
were organized for Senior and Middle level Management
under the aegis of Federation of Ugandan Employees,
Uganda Manufacturing Association and Management
for Development Uganda. MRUL was featured in the
Annual Report 2012-13 2322
February 2013 issue of the African Business Review
and Food Digital magazine. The Company received Best
Employer Award in Hoima, Mityana and Fort Portal regions,
from the National Social Security Fund.
Gisovu Tea Company LimitedThe Management of Gisovu Tea Company Limited in Rwanda
was taken over by Borelli Tea Holdings Limited, U.K. the wholly
owned subsidiary of the Company on 24th February 2011. In its
first full year of operation in 2012 under the new Management,
Gisovu recorded significant improvement both on production
and price front. In 2012, the Company achieved highest
ever production of 22.89 lakh kgs. in a declining production
scenario in Rwanda, the Company’s Estate was one of the
three Estates to have recorded improvement in production.
The Company’s sale price recorded a significant jump, from
USD 3.39 per kg. in 2011 to USD 3.71 in 2012. During the year
the Company achieved a post tax profit equivalent to Indian
Rs.1477 Lakhs compared to Indian Rs.1074 Lakhs earned in
the earlier year. Gisovu has declared a dividend equivalent to
Indian Rs.503 Lakhs for the year 2012.
The area under tea has improved, with implementation of
good field practices and this will be continued. Eucalyptus
forestry used for firing the factory boilers was recycled and
consolidated where there was no regeneration of plants.
The new machinery ordered against the Factory expansion
project was installed and Gisovu now has a 42” CTC machine
with a 18” Rotorvane. A new workshop was equipped with a
Lathe and an Auto Axis Milling Machine. The Transformer was
uploaded to cater for the ultimate factory production and a
new Panel Board was installed to give greater flexibility. The
Withering area was enhanced by adding 8 new troughs and
an additional 4.5 ton Boiler was installed along with radiators
in the withering troughs. Gisovu achieved Rainforest Alliance
certification during the year. The Estate is in the process of
obtaining an ISO 22000 certification. Gisovu Tea Company
has endeavoured to maintain CSR activities in its area
of operations. Vocational training and schools are being
supported by the Company. Good relations both with the
local Cooperatives and the Government of Rwanda has been
maintained.
McLeod Russel Middle East DMCC During the year 2012-13, the Company completed its first full
year of operations. It expanded its trading activities to new
markets as well as strengthened its business in the existing
markets. The Company’s turnover improved from an amount
equivalent to Indian Rs.234 Lakhs to Indian Rs.2076 Lakhs.
However, Company’s operations are in a fledgling state and it
is expected to turn around in the current year. The Company
incurred a net loss of an amount equivalent to Indian Rs.82
Lakhs compared to a loss of Indian Rs.99 Lakhs incurred in
the earlier period.
D1 Williamson Magor Bio Fuel LimitedD1 Williamson Magor Bio Fuel Limited (D1WML) was
incorporated under a 50:50 joint venture agreement between
Williamson Magor & Co. Limited (WML) and D1 Oils Trading
Ltd. UK to facilitate development of Jatropha plantation
under contract farming arrangements for production of bio
diesel from Jatropha oilseeds. Being an associate of WML
your Company presently holds 34.30% of the equity capital of
D1WML.
D1WML has abandoned most of the plantations in the North
East on account of excessive growth of weed damaging
Jatropha plantation to a great extent. The Plantation in
Jharkhand however is gradually becoming productive. It is
now expected that the Company is likely to procure oil seeds
at sub-commercial scale till 2015 and on a commercial scale
thereafter mainly at Jharkhand. The longer gestation period
of Jatropha plantation and the poor yield as compared to
initial indication has been a global phenomenon and most
of the Companies engaged in this business are adversely
affected. In view of abandonment of the plantations in the
North East your Company has made an appropriate provision
in the Accounts against the investments made by it in D1 WML.
Corporate Social ResponsibilityYour Company is conscious of its social responsibilities and
McLeod Russel India Limited
the environment in which it operates. The Company has,
over the years, successfully formulated a methodology for
improving the environment, which surround the units of the
Company and thereby enriching the society.
The Company continued with its welfare activities for
development in the field of education, culture and other
welfare measures to improve the general standard of
living in and around the Tea Estates. The emphasis was on
improvement of health, development of education, culture
and sports. Medical assistance was also provided to the
nearby villages through medical camps. The Company also
conducts out-reach programmes to cover the medical needs
of certain remote areas accessible from its Tea Estates. The
Company continues to render assistance both monetarily and
with man power, to hold regular camps for eye-related needs.
In this iniative the Company receives immense support from
Sri Sankardeva Nethralaya and District Health Departments.
There were around 1000 persons who underwent cataract
operations in the year under review. Your Company continues
to support the Moran Blind School like earlier years.
The Tea Estates of the Company have Schools of varying
capacities, both in terms of numbers and quality. This is
an endeavour which your Company tries to improve upon
ceaselessly. It also assists Schools in and around its business
units.
The Williamson Magor Education Trust was formed for
development of education. Over the years, the Trust with
generous donations from your Company has awarded over
125 scholarships to deserving students selected by the
autonomous Expert Committee and Selection Board. With
its main objective of spreading education, the Trust had set
up Assam Valley School several years ago. The school is now
rated amongst the best residential schools in India, and the
first in the North East with Pan-Indian recognition.
Each year under the aegis of Assam Valley Literary Award, the
Trust confers upon an eminent living Assamese litterateur, an
award consisting of a trophy, citation and a cash award. This
year the award was conferred on an eminent Assamese writer
Shri Sameer Tanti in acknowledgement of his contributions in
the field of Assamese literature.
The Company gives importance to preservation of the
natural habitat around its Tea Estates and engages in several
programmes and initiatives to preserve the bio-diversity in
its surrounding areas. The Company has undertaken a tree
planting and soil preservation programme and participates
in the Ethical Tea Partnership programmes, a global initiative.
Your Company is also sensitive to the requirements of
world bodies which regulate cultivation and manufacturing
practices. A small but significant social measure is the Heritage
conservation, which your Company has been supporting over
a long period of time.
The Company is continuing with its support to Bodo
Handloom scheme in Mangaldai which leads to gradual
empowerment of women and promotion of local handicrafts
both at the Tea Estates and village level. The Company also
supports a programme for financial assistance towards
education of some under-privileged children in Kolkata and
also contributes to a recognised institution in Kolkata, which
addresses the needs of children challenged by Cerebral Palsy.
Your Company also takes active interest in promotion of art
and has been generously contributing towards promotion
of Kolkata Museum of Modern Art (‘KMOMA’), a museum of
international standard being set up at Kolkata.
DirectorsSince the last Report there was no change in the Board of
Directors of the Company. In accordance with the provisions
of the Articles of Association of the Company Mr. B. M.
Khaitan, Dr. R. Srinivasan, Mr. B. Bajoria and Mr. R. Sen will retire
by rotation at the forthcoming Annual General Meeting and
being eligible, offer themselves for re-appointment.
Cost AuditThe Ministry of Corporate Affairs, Government of India by
an Order directed audit of the Cost Accounts maintained by
the Company under Section 209(1) (d) of the Companies
Act, 1956 in respect of the Plantation Product on a yearly
basis. In terms of the said Order Cost Audit is conducted by
Annual Report 2012-13 2524
four firms of Cost Accountants appointed with the approval
of the Ministry of Corporate Affairs (‘MCA’). In terms of the
General Circular No.15/2011 dated 11th April, 2011 issued by
MCA, full particulars of the Cost Auditors as also other details
pertaining to the Cost Audit are given in the Annexure forming
part of this Report.
AuditorsMessrs. Price Waterhouse retire as the Auditors at the
conclusion of the forthcoming Annual General Meeting and,
being eligible, offer themselves for re-appointment.
Management Discussion & Analysis Report and Report on Corporate GovernanceAs required in terms of the Listing Agreement with the Stock
Exchanges, a Management Discussion and Analysis Report
and a Report on Corporate Governance are annexed forming
part of this Report.
Directors’ Responsibility StatementPursuant to Section 217(2AA) of the Companies Act, 1956 (‘the
Act’) the Directors state as follows:
1. That in the preparation of the annual accounts for the
financial year ended 31st March 2013, the applicable
accounting standards had been followed with no material
departures;
2. That the Directors had selected such accounting policies
and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company at
the end of the financial year and of the profit or loss of the
Company for that period;
3. That the Directors had taken proper and sufficient care
for the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting
fraud and other irregularities;
4. That the Directors had prepared the annual accounts on a
going concern basis.
Conservation of Energy and Technology AbsorptionA statement giving details of conservation of energy and
technology absorption in accordance with the Companies
(Disclosure of Particulars in the report of the Board of
Directors) Rules, 1988, is annexed.
Particulars Of EmployeesA statement of particulars of employees as required under
section 217(2A) of the Act read with the Rules made thereunder
forms a part of this report as a separate Annexure.
Employee RelationsThe Company has a large work force employed on tea estates.
The welfare and well being of the workers are monitored
closely and harmonious relations with its employees are
being maintained.
The Industrial relations remained cordial throughout the
year and your Board of Directors wish to place on record
its appreciation for the dedicated services rendered by the
executives, staff and workers at all levels and for the smooth
functioning of all estates. The policy of transparency and
recognition inspired the employees to contribute their best
for the Company.
For and on behalf of the Board
Place : Kolkata A. Khaitan – Managing Director
Date : 27th May 2013 K. K. Baheti – Wholetime Director & CFO
McLeod Russel India Limited
Information In accordance to the Companies (Disclosure
of Particulars in the Report of the Board of Directors) Rules,
1998, and forming part of the Directors’ Report for the year
ended 31st March 2013.
A. Conservation of EnergyThe Company has installed different energy efficient machines
in the tea estates. Withering capacity has been increased in
seven estates. Ten Rotorvane feeders, eleven Rotorvanes,
fifteen CTC machines, twelve CFM’s. eight VFBD’s, three coal
stoves, two boilers, twenty three milling machines, sixteen
lathe machines were purchased and installed in various
factories. This would reduce energy consumption in the tea
factories with improved productivity of machinery resulting
in lesser hours of manufacture. Fifteen diesel generating
sets and five gas generating sets were installed. The energy
consumption for domestic purposes has been rationalized
through creation of awareness and regular monitoring.
B. Power & Fuel ConsumptionYear ended 31.03.2013 Year ended 31.03.2012
1. Electricity
(a) Purchased:
- Units (Kwh) 53105013 56658427
- Total Amount (Rs.) 392269851 389143633
- Rate/Unit (Rs.) 7.39 6.87
(b) Own Generation:
Through Diesel Generator
- Units (Kwh) 23406584 18015027
- Units per Litre of Diesel oil 3.09 3.13
- Cost/Unit (Rs.) 14.30 13.51
(c) Own Generation:
Through Gas Generator
- Units (Kwh) 3030486 3414199
- Units per (SCUM) of Gas 2.44 2.63
- Cost/Unit (Rs.) 5.98 4.57
2. Coal
- Quantity (Tonnes) 49985 45124
- Total Amount (Rs.) 342806129 246931742
- Average Rate (Rs.) 6858.18 5472.29
3. Furnace Oil
- Quantity (Litres) 175350 76572
- Total Amount (Rs.) 7866682 3127437
- Average Rate (Rs.) 44.86 40.84
4. Gas (excluding used for Generator)
- Quantity (SCUM) 18364666 18682206
- Total Amount (Rs.) 156794294 142192031
- Rate/Unit (Rs.) 8.54 7.61
5. Total Power and Fuel consumption Per unit of production of Tea
- Saleable Production – Tea (Kgs.) 78213259 79308106
- Electricity (Kwh) 1.02 0.98
- Furnace Oil (Litre) 0.00 0.00
- Coal (Kgs) for tea dried by coal 1.16 1.04
- Gas (SCUM) for tea dried by gas 0.52 0.52
ANNEXURE TO THE DIRECTORS’ REPORT 2012-2013
Annual Report 2012-13 2726
C. Research and DevelopmentThe Company continues with the policy of reviewing clone blends to improve the yield and quality of tea estates.
The production of Vermicompost was increased by tea estates to improve the organic status of the soil. This will result in
improving the yield in all areas of extension and replanted teas.
Expenditure on Research & DevelopmentYear ended 31.03.2013 Year ended 31.03.2012
(a) Capital (Rs. Lakhs) Nil Nil
(b) Revenue (Rs. Lakhs) 110.43 113.89
(c) Total (Rs. Lakhs) 110.43 113.89
(d) Total R&D Expenditure as % of turnover 0.08 0.09
D. Technology Absorption, Adaptation & Innovation The Company undertakes modernization and upgradation of factories on a regular basis with improved technology.
Seminars, workshops and group discussions with regular flow of feedback from field and factory workers are held regularly.
Efficient training of staff with a definite approach towards improving their efficiency are conducted regularly.
Innovative achievements of the operating people in the agriculture and manufacture of tea are highly encouraged in the
Company’s interest.
E. Foreign Exchange Income & OutgoDuring the year, the Company’s direct exports were 250.52 lakh kgs (2011-12 : 235.58 lakh kgs) of Tea.
Year ended 31.03.2013 Year ended 31.03.2012
Foreign Exchange Earnings (Rs. Lakhs) 48,433.31 40,263.38
Foreign Exchange Outgo (Rs. Lakhs) 2,971.04 2,439.19
For and on behalf of the Board
Place : Kolkata A. Khaitan K.K.Baheti
Date : 27th May 2013 Managing Director Wholetime Director & CFO
McLeod Russel India Limited
Particulars of cost auditors and details of filing of cost
audit report for the year ended 31st march 2012
Notes:
1. Remuneration as shown above includes, inter alia, value of perquisites and Company’s contribution to retiral funds as applicable.
2. The above employees were wholetime employees during the financial year ended 31st March 2013.
3. None of the above employees is related to any Director of the Company within the meaning of Section 6 of the Companies Act, 1956 except
Mr. A. Khaitan, who is a relative of Mr. B. M. Khaitan and Mr. D. Khaitan.
For and on behalf of the Board
Place : Kolkata A. Khaitan - Managing DirectorDate : 27th May 2013 K.K. Baheti -Wholetime Director & CFO
Name D e s i g n a t i o n /
Nature of Duties
Remuneration
(Rs. In Lakhs)
Qualifications Experience
(Years)
Date of
Employment
Age Previous
Employment /
Position held
A. Khaitan Managing Director 278.58 B.Com. (Hons.) 22 01.04.2005 45 N.A
R. Takru Wholetime Director 138.48 B.A. (Hons.) 38 01.04.2005 58 Eveready Industries India Limited
Senior Vice-President
A. Monem Wholetime Director 138.73 B.Com. (Hons.) 33 01.04.2005 53 Eveready Industries India Limited
Senior Vice-President
K.K. Baheti Wholetime Director 137.69 B.Com. (Hons.)
FCA., ACS., AICWA
24 01.04.2005 50 Eveready Industries India Limited
Vice-President
Details of Cost Auditor Units (Tea Estates) Audited Due Date of Filling Actual Date of Filling
Name: Mani & Co. Bhooteachang, Dimakusi, Attareekhat,
Borengajuli, Corramore, Paneery,
Addabarie, Tarajulie, Tezpore & Gogra,
Harchurah, Phulbari, Rupajuli
28th February 2013 28th December 2012
Address: Ashoka, 111, Southern Avenue,
KOLKATA 700 029
Registration No.
allotted by ICWAI :
00004
Name: SPK Associates Baghjan, Bordubi, Koomsong, Phillobari,
Bhatpara, Central Dooars, Chuapara,
Jainti, Jaybirpara, Mathura, Mahakali,
Dirial, Itakhooli, Keyhung
28th February 2013 28th December 2012
Address: Kailash Apartment, P-89,
C.I.T. Road (IV M), Beliaghata,
KOLKATA 700 010
Registration No.
allotted by ICWAI :
00040
Name: Kumar & Associates Dekorai, Mijicajan, Pertabghur,
Monabarie, Behali, Dufflaghur, Halem,
Nya Gogra, Bargang, Boroi, Attabarrie,
Lepetkatta, Moran, Sepon
28th February 2013 28th December 2012
Address: Vedanta 44 C, Dharmatala,
Flat - 2B, KOLKATA 700 042
Registration No.
allotted by ICWAI :
00250
Name: DGM & ASSOCIATES Rajmai , Dirai, Bogapani, Dehing, Dirok,
Margherita, Namdang, Bukhial, Hunwal,
Behora, Beesakopie, Raidang, Samdang,
Daimukhia
28th February 2013 28th December 2012
Address: 9-B Arpuli Lane, KOLKATA
700 012
Registration No.
allotted by ICWAI :
00038
For and on behalf of the Board
Place : Kolkata A. Khaitan Managing Director
Date : 27th May 2013 K. K. Baheti Wholetime Director & CFO
Statement of particulars of Employees pursuant
to the Provision of Section 217(2A) of the Companies Act, 1956
Annual Report 2012-13 2928
Industry Structure And DevelopmentIndia is the largest black tea producer in the world,
producing approximately 1111 million Kgs (revised) during
calendar year 2012 as against 1115 million Kgs (revised)
during 2011. This represents around 40% of the total
global tea production. Kenya (370 million Kgs), Sri Lanka
(326 million Kgs), other African countries (156 million kgs),
Indonesia (54 million Kgs), Bangladesh (62 million kgs)
are other main black tea producers in the world. China
produces predominantly green tea with a production of
1700 million Kgs.
Kenya and other African countries had dry weather
conditions upto March 2012, thereby, lost around 7
million Kgs of crop as compared to 2011. India also
lost approximately 5 million Kgs of crop during 2012
as compared to the previous year due to unfavorable
weather condition during peak production months. Strong
consumption growth, low inventory, lower production
has helped in higher prices by Rs. 22 per Kg in domestic
market. Prices in global markets were also higher by 5 to 7
% due to lower production in Kenya.
Substantial revision in the wage cost as per the agreement
with the unions in Assam, substantially higher cost on all
components of power and fuel and loss in own crop due
to unfavorable weather conditions has taken the cost in
India up by approximately Rs. 21 per Kg.
Opportunities And ThreatsIndia and global tea production is likely to remain
stagnant to very insignificant growth in next few years
due to negligible addition of land under tea cultivation
by organized sector. Demand however, is expected to
increase by 2 to 3 % per annum thereby creating further
shortages and lower inventory levels. Indian exports are
likely to improve on strong demand of orthodox tea from
Iran. Global black tea production is likely to be higher by 50
to 60 million Kgs on normal weather conditions. This will
have a positive impact in containing the cost at last year’s
level. However, prices are likely to be stable and positive
on recovery of crop. Depreciating currency in India during
2012 had a positive impact, however any reversal of the
trend may impact export realisation.
The small tea growers form a considerable part of
the industry. The recent revised figures show a total
production of around 200 million Kgs from these small
growers in North India. This gives an opportunity to create
a segment based more on variable cost as compared to
fixed cost for own production.
Risk And ConcernsThe Tea Industry is largely dependent on the vagaries of
nature. The Industry is highly labour intensive and is subject
to stringent labour laws. Comparatively high labour costs,
high social cost over most other tea producing countries,
high infrastructure costs and increasing energy and other
input costs remain the major problems for the Indian Tea
Industry. Shortage of labour during peak season in some
pockets is also a cause for concern.
MANAGEMENT
DISCUSSION
AND ANALYSIS
McLeod Russel India Limited
These problems need to be addressed by improved
productivity and energy conservation. The Tea Industry both
in Assam and West Bengal have discussed with the Trade
Unions and implemented productivity linked wages for the tea
workers with a view to regain the Industry’s competitiveness
in the global market. Tea industry in Assam had signed an
agreement with Labour Union in Assam for the period 1st
January 2012 to 31st December 2014.
The Special Purpose Tea Fund (SPTF) has been set up by
Commerce Ministry to implement uprooting and replanting
programme which would help improvement in the productivity
and yield thereby reduce cost in the coming years.
The Industry is also subject to taxation from the State
Government as well as Central Government and while the level
of direct taxes has come down over a period, some of the
State levies like cess on green leaf in Assam and substantial
increase in Land Revenue charges put the industry at a very
disadvantageous position.
To mitigate various types of risks that the Company has to
face, the Board of Directors of the Company has adopted
a Risk Management Policy and implemented the same at
the Tea Estates and at Head Office of the Company. In view
of fluctuations in foreign exchange and interest rates, the
Company has adopted a specific Risk Management Policy
to address the risks concerning the foreign exchange and
derivative transactions. The Company has introduced Hazard
Analysis and Critical Control Points (HACCP) at all the Tea
Factories to ensure better quality product.
OutlookNormal weather condition across all black tea producing
countries as compared to dry weather last year has improved
production during the 1st Quarter of calendar year 2013. Tea
production in these countries is estimated to be higher by 45
million Kgs upto March. Production in India during calendar
year 2013 is expected to recover to 2011 levels. Significantly
lower inventory in India and strong consumption growth,
but recovery in production due to normal weather condition
should stabilize the prices during 2013-14. However, prices of
better quality teas are expected to be higher both in domestic
and global markets. Tea prices in India are currently ruling
lower by Rs. 5 to 10 per Kg as compared to last year. Normal
increase in wages as per agreement, normal increase in
input costs and recovery of crop during the year should have
positive impact on the cost during current financial year. Costs
per Kg are expected to be lower as compared to last year.
Internal Control Systems And Their AdequacyThe Company has in place adequate systems of internal
control commensurate with its size and the nature of its
operations. These have been designed to provide reasonable
assurance with regard to recording and providing reliable
financial and operational information, complying with
applicable statutes, safeguarding assets from unauthorized
use or losses, executing transactions with proper
authorization and ensuring compliance of corporate policies.
Three independent firms of Chartered Accountants carry
out the internal audit at the Tea Estates on a regular basis.
Annual Report 2012-13 3130
Another firm of Chartered Accountants conducts internal
audit at the Head Office.
The Company has an Audit Committee, the details of which
have been provided in the Corporate Governance Report.
The Audit Committee reviews Audit Reports submitted
by the internal Auditors. Suggestions for improvement
are considered and the Audit Committee follows up the
implementation of corrective actions. The Committee also
meets the Company’s statutory auditors to ascertain, inter
alia, their views on the adequacy of internal control systems in
the Company and keeps the Board of Directors informed of its
major observations from time to time. The Risk Management
Policy adopted by the Company has further strengthened the
internal control system.
FinancesFinancial ratios have improved substantially over last couple
of years. Gross debt (consolidated) as on 31st March, 2013
amounted to Rs. 249 crores as compared to Rs. 263 crores as
on 31st March, 2012 Net Debt ( Net of NABARD Deposits and
Cash Balance) has come down to Rs 30 crores as against Rs.
105 crores last year. Internal generations have been used to
reduce the debt by Rs. 15 crores during the year.
Human ResourcesTea Industry is highly labour intensive. The Company
employs over 80,000 personnel at its Tea Estates and
other establishments in India. Employee relations remained
satisfactory during the period under review. The Company
would like to record its appreciation of the wholehearted
support and dedication from employees at all levels in
maintaining smooth production and manufacture of tea from
all the Tea Estates during the year.
Cautionary StatementStatements in the Management Discussion and Analysis
Report in regard to projections, estimates and expectations
have been made in good faith. Many unforeseen factors may
come into play and affect the actual results, which could
be different from what the Directors envisage in terms of
future performance and outlook. Market data and product
information contained in this Report have been based on
information gathered from various published and unpublished
reports, and their accuracy, reliability and completeness
cannot be assured.
For and on behalf of the Board
Place : Kolkata A. Khaitan K.K.Baheti
Date : 27th May 2013 Managing Director Wholetime Director & CFO
McLeod Russel India Limited
1. Company’s Philosophy The Company’s philosophy on Corporate Governance
is aimed at efficient conduct of its operations and in
meeting its obligations towards various stakeholders
such as Customers, Vendors, Employees, Shareholders
and Financiers and to the Society at large. The Company
is in the business of cultivation and production of Tea
and is one of the major producers of Tea in the world.
The Company endeavours to produce quality Tea that
consistently commands respect, trust and loyalty
throughout the world by way of sustained efforts,
research and development in plantation and adoption of
latest technology. The Company strives for successful
management of contingencies like drought and flood.
While it is the endeavour of your Company to continue to
produce Tea of premium quality to the satisfaction of its
Customers worldwide, it also gives due importance to its
obligations to the large workforce that it employs on the
Tea Estates. The Company runs a business that has a
human face and values the environment, people, products,
plantation practices, customers and shareholders.
The Company believes in achieving its goals, which
result in enhancement of Shareholders’ value through
transparency, professionalism and accountability and
nurture these core values in all aspects of its operations.
2. Board of Directors i. Composition The Board of Directors of your Company as on 31st March
2013 consisted of twelve Directors as under:
Two Non-Executive Directors being the Chairman & Vice
Chairman
Four Wholetime Directors including the Managing
Director
Six Non-Executive Independent Directors.
The Board has an optimum combination of Executive and
Non-Executive Directors and half of the Board consisted
of Independent Directors. No Director is related to any
other Director on the Board in terms of the definition of
‘relative’ given under the Companies Act, 1956, except
Mr. D. Khaitan and Mr. A. Khaitan who are brothers and are
also sons of Mr. B. M. Khaitan.
ii. & iii. Attendance at the Board Meetings/last AGM,
Directorship and Chairmanship/ Membership in other
Board/Board Committees
Name and category of the Directors on the Board, their
attendance at Board Meetings held during the financial
year ended 31st March 2013, number of Directorships and
Committee Chairmanships/Memberships held by them
in other public limited companies are given below. Other
Directorships do not include alternate Directorships,
Directorship in Private Limited Companies and Companies
under Section 25 of the Companies Act, 1956 and of the
Companies incorporated outside India. Chairmanship/
Membership of Board Committees relates to only Audit
and Shareholders’/ Investors’ Grievance Committees.
REPORT ON
CORPORATE
GOVERNANCE
Annual Report 2012-13 3332
Name of Directors Category No. of
Board Meetings
Whether
attended last
AGM held on
27th July 2012
No. of
Directorships
in other
public limited
companies
No. of Committee
positions held in
other public limited
companies
Held
during the
year
Attended As
Chairman/
Chairperson
As
Member
(#)
MR. B. M. KHAITAN NON-EXECUTIVE
CHAIRMAN
4 3 YES 5 - 1
MR. D. KHAITAN NON-EXECUTIVE
VICE-CHAIRMAN
4 1 NO 7 - 1
MR. A. KHAITAN MANAGING
DIRECTOR
4 4 YES 7 1 2
DR. R. SRINIVASAN NON-EXECUTIVE &
INDEPENDENT
4 4 YES 7 3 8
MR. B. BAJORIA NON-EXECUTIVE &
INDEPENDENT
4 4 YES 7 - 1
MR. R. SEN NON-EXECUTIVE &
INDEPENDENT
4 4 YES 1 - -
MRS. R. NIRULA NON-EXECUTIVE &
INDEPENDENT
4 4 YES 6 2 5
MR. U. PAREKH NON-EXECUTIVE &
INDEPENDENT
4 1 YES 6 - 3
MR. S. N. MENON NON-EXECUTIVE &
INDEPENDENT
4 0 NO 3 - -
MR. R. TAKRU WHOLETIME
DIRECTOR
4 4 YES 3 - -
MR. A. MONEM WHOLETIME
DIRECTOR
4 4 YES - - -
MR. K.K. BAHETI WHOLETIME
DIRECTOR & CFO
4 4 YES 9 - 2
(#) Including Chairmanship, if any.
None of the Directors on the Board is a Member of more
than 10 Committees or Chairman/Chairperson of more
than 5 Committees as specified in Clause 49, across all the
Companies in which he/she is a Director. The Directors have
made necessary disclosures regarding Committee positions
held in other public limited companies.
iv. Number & Dates of Board Meetings/Date of last AGM held
a) Four Board Meetings were held during the year and the
gap between two meetings did not exceed four months. The
dates on which the Board Meetings were held are as follows:
28th May 2012, 27th July 2012, 30th October 2012 and 25th
January 2013.
McLeod Russel India Limited
The last Annual General Meeting of the Members of the
Company was held on 27th July 2012.
b) Necessary information where applicable as mentioned in
Annexure 1A to Clause 49 of the Listing Agreement has been
placed before the Board for its consideration.
3. Audit Committee i. The role and terms of reference of the Audit Committee
covers the areas mentioned under Clause 49 of the Listing
Agreement and in Section 292A of the Companies Act,
1956. Brief descriptions of the terms of reference of the
Audit Committee are as follows:
a) Oversight of the Company’s financial reporting process and
the disclosure of its financial information to ensure that the
financial statement is correct, sufficient and credible.
b) Recommending to the Board, the appointment, re-
appointment and, if required the replacement or removal of
the statutory auditor and the fixation of audit fees, and also
approval for payment of any other services rendered by the
statutory auditors.
c) Discussion with the statutory auditors before the audit
commences about nature and scope of audit as well as post-
audit discussion to ascertain any area of concern.
d) Reviewing, with the management, performance of
statutory and internal auditors, and adequacy of the internal
control systems.
e) Reviewing, with the management, the quarterly financial
Results before submission to the Board for approval.
f) Reviewing, with the management, the annual financial
statements before submission to the Board for approval, with
particular reference to:
Matters required to be included in the Directors’
Responsibility Statement to be included in the Board’s report
in terms of clause 2AA of Section 217 of the Companies Act,
1956.
Changes, if any, in accounting policies and practices and
reasons for the same;
Major accounting entries involving estimates based on
exercise of judgment by management;
Significant adjustments made in the financial statements
arising out of audit findings;
Compliance with listing and other legal requirements
relating to financial statements;
Disclosure of any related party transactions;
Qualifications in the draft audit report.
g) Reviewing the adequacy of internal audit function.
h) Discussion with internal auditors of any significant findings
and follow-up thereon.
i) Reviewing the findings of any internal investigations by the
internal auditors into matters where there is suspected fraud
or irregularity or a failure of internal control systems of a
material nature and reporting the matter to the Board.
j) Looking into the reasons for substantial defaults in
payments to the shareholders and creditors.
k) Carrying out any other function as is mentioned in the
terms of reference of the Audit Committee.
ii. Composition
The Audit Committee of the Board as on 31st March 2013
consisted of Dr. R. Srinivasan, Messrs. B. Bajoria, R. Sen and
S. N. Menon. Dr. R. Srinivasan, a Non-Executive Independent
Director, having adequate financial and accounting
qualification and expertise, is the Chairman of the Audit
Committee. The other members of the Committee are also
financially literate. The Committee consists of four Non-
Executive Independent Directors. Mr. A. Guha Sarkar, Vice
President & Company Secretary acts as the Secretary to the
Committee.
iii. Meetings and attendance during the year
The particulars of meetings attended by the members of the
Audit Committee during the financial year ended 31st March
2013 are given below:
Annual Report 2012-13 3534
Four Meetings of the Audit Committee were held during the
financial year ended 31st March 2013. The dates on which the
Audit Committee Meetings were held are as follows:
28th May 2012, 27th July 2012, 30th October 2012 and 25th
January 2013.
The necessary quorum was present at all the Meetings.
4. Remuneration Committeei. Brief description of terms of reference The broad terms of reference of the Remuneration Committee
are as follows:
(a) to approve/recommend to the Board of Directors
the remuneration package of the Managing Director and
Wholetime Directors and also to recommend remuneration
payable to the Non-Executive Directors.
(b) to approve, in the event of loss or inadequacy of profits
in any year, the minimum remuneration payable to the
Managing Director and Wholetime Directors within the limits
and subject to the parameters prescribed in Schedule XIII to
the Companies Act, 1956.
ii. Composition The Remuneration Committee of the Board as on 31st March
2013 comprised Mr. B. Bajoria, a Non-Executive Independent
Director, as the Chairman, Dr. R. Srinivasan and Mr. R. Sen,
Non-Executive Independent Directors as its Members.
iii. Attendance during the yearOne Meeting of the Remuneration Committee was held on
28th May 2012 during the financial year ended 31st March
2013.
iv. Remuneration Policy The Managing Director and Wholetime Directors are
appointed by the Board at such remuneration as approved
by the Remuneration Committee and confirmed by the Board
subject to the Shareholders’ approval in a General Meeting.
In terms of the decision taken by the Board on 28th July 2009,
each Non-Executive Director is entitled to a sitting fee of
Rs.20,000/- for each meeting of the Board or any Committee
thereof attended by him.
Besides the sitting fees as aforesaid, the approval of the
shareholders by a Special Resolution passed at the Annual
General Meeting held on 29th July 2011 enables the Company
to pay commission to its non-executive Directors, subject
to the aggregate limit of 1% of the net profit (restricted to
Rs.2,50,000/- per Director, as approved by the Board) of
the Company computed in accordance with the provisions
of Sections 198, 349 and 350 of the Companies Act, 1956 for
each of the five financial years commencing from 1st April
2011.
Name of Directors Category Attended
Mr. B. Bajoria, Chairman Non-Executive & Independent 1
Dr. R. Srinivasan Non-Executive & Independent 1
Mr. R. Sen Non-Executive & Independent 1
Name of Directors Category No. of Meetings
Held during the year Attended
Dr. R. Srinivasan, Chairman Non-Executive & Independent 4 4
Mr. B. Bajoria Non-Executive & Independent 4 4
Mr. R. Sen Non-Executive & Independent 4 4
Mr. S. N. Menon Non-Executive & Independent 4 -
McLeod Russel India Limited
v. Details of Remuneration to all the Directorsa) The details of remuneration for the financial year ended 31st March 2013 to the Non-Executive Directors and their shareholding
in the Company are as under:
Name of Directors Sitting Fees (Rs.) for
Board Meetings (#)
Sitting Fees (Rs.) for
Committee Meetings
(#)
Commission(#) (Rs.) No. of Shares held as
on 31st March 2013 (#)
Mr. B. M. Khaitan 60,000 - 2,50,000 36,288
Mr. D. Khaitan 20,000 - 2,50,000 11,818
Dr. R. Srinivasan 80,000 1,00,000 2,50,000 -
Mr. B. Bajoria 80,000 1,40,000 2,50,000 1,400
Mr. R. Sen 80,000 1,40,000 2,50,000 133
Mr. U. Parekh 20,000 20,000 2,50,000 -
Mr. S. N. Menon - - 2,50,000 -
Mrs. R. Nirula 80,000 - 2,50,000 -
TOTAL 4,20,000 4,00,000 20,00,000 49,639
(#) Other than the above there is no pecuniary relationship or transactions with any of the Non-Executive Directors.
The Company has not issued any convertible instruments.
b) Details of Remuneration for the financial year ended 31st March 2013 to the Managing Director and Wholetime Directors are
given below:
Mr. A. Khaitan
Rs.
Mr. R. Takru
Rs.
Mr. A. Monem
Rs.
Mr. K.K. Baheti
Rs.
Salary 1,20,00,000 54,00,000 54,00,000 54,00,000
Contribution to
Provident Fund and
other Funds
32,40,000 14,58,000 14,58,000 14,58,000
Bonus and Allowances 92,23,256 67,90,000 67,90,000 67,90,000
Monetary value of
Perquisites
33,95,083 2,00,257 2,25,049 1,20,789
Period of appointment 3 years w.e.f.
01.04.2011
3 years w.e.f.
01.04.2011
3 years w.e.f.
01.04.2011
3 years w.e.f.
01.04.2011
Notice period 3 months 3 months 3 months 3 months
Severance fees Not specified Not specified Not specified Not specified
5. Shareholders’/Investors’ Grievance Committeei. Composition of the Committee and the Non-Executive
Director heading the Committee
The Shareholders’/Investors’ Grievance Committee of the
Board as at 31st March 2013 consisted of three members.
Mr. R. Sen, a Non-Executive Independent Director, is the
Chairman of the Committee. Mr. B. Bajoria and Mr. U. Parekh
both Non-Executive and Independent Directors were the
other Members of the Committee.
a) Brief description of the terms of reference
The terms of reference of the Committee are to look into
Annual Report 2012-13 3736
redressal of Shareholders’/Investors’ complaints relating
to non-receipt of notices, share certificates, annual reports,
dividends, transfer of shares, dematerialization of shares and
other grievances.
b) Meetings and attendance during the year
During the financial year two Meetings of the Shareholders’/
Investors’ Grievance Committee were held on 30th October
2012 and 25th March 2013 and the attendance of Members
are as follows:
iii. No Special Resolution was passed during the financial
year ended 31st March 2013 through Postal Ballot.
iv.Resume and other information regarding the Directors
being re-appointed as required under Clause 49 IV(G)(i) of
the Listing Agreement have been given in the Notice of the
Annual General Meeting annexed to this Annual Report.
ii. Name and designation of the Compliance Officer
Mr. A. Guha Sarkar
Vice President & Company Secretary
McLeod Russel India Limited
Four Mangoe Lane, Surendra Mohan Ghosh Sarani, Kolkata 700001
iii. Details of complaints recieved, redressed and pending during the financial year ended 31st March, 2013
Pending at the beginning of
the year
Received during the year Redressed/Replied during
the year
Pending at the year end
Nil 30 30 Nil
6. General body meetingsi. Location and time of last three Annual General Meetings:
Financial Year ended Date Time Venue
31.03.2010 02.08.2010 11.00 a.m. Kala Mandir, 48 Shakespeare Sarani, Kolkata 700 017
31.03.2011 29.07.2011 11.00 a.m. Kala Mandir, 48 Shakespeare Sarani, Kolkata 700 017
31.03.2012 27.07.2012 11.30 a.m. Kala Mandir, 48 Shakespeare Sarani, Kolkata 700 017
ii. Special Resolutions passed in the previous three AGMs.
AGM held on Special Resolution passed:
02.08.2010 A Special Resolution was passed pursuant to provisions of Section 31 altering the existing Article 5 of
the Articles of Association of the Company so as to empower the Company to buy back its own fully
paid shares out of its free reserves or securities premium at the appropriate time in future subject to
the provisions of Sections 77A, 77AA, and 77B of the Companies Act, 1956.
29.07.2011 A Special Resolution pursuant to the provisions of Section 309(4) of the Companies Act, 1956 for
payment of remuneration by way of commission to the Non-Executive Directors.
27.07.2012 None
Name of Directors Category Attended
Mr. R. Sen, Chairman Non-Executive & Independent 2
Mr. B. Bajoria Non-Executive & Independent 2
Mr. U. Parekh Non-Executive & Independent 1
McLeod Russel India Limited
7. Disclosuresi) Transactions with the related parties have been disclosed in
Note No.36 of the Notes to Financial Statements in the Annual
Report for the year under review.
ii) The Company has complied with all the mandatory
requirements of the Stock Exchanges, SEBI and other
statutory authorities on all matters related to capital markets
during the financial year. No penalties or strictures were
imposed on the Company by the Stock Exchanges, SEBI or
any other statutory authority, on any matter relating to the
capital markets during the financial years ended 31st March
2011, 31st March 2012 and 31st March 2013.
iii) a) The Company has adopted separate Codes of
Conduct (‘Code’) for the Members of the Board and Senior
Management Personnel as required under Clause 49 of
the Listing Agreement. All the Board Members and the
Senior Management Personnel have affirmed compliance
of the Code. The Annual Report of the Company contains a
declaration to this effect signed by the CEO. The Company has
also adopted a Code for Prohibition of Insider Trading.
All the aforesaid Codes have been posted on the Company’s
Website.
b) The Company has obtained Certificate from the
Statutory Auditors on compliance of Clause 49 of
the Listing Agreement and a copy of such Certificate is
attached to this report.
iv) The Company has laid down a procedure for risk assessment
and minimization thereof. The Company maintains a Risk
Register wherein the various risks the Company is exposed to
and the steps for mitigation thereof are recorded.
v) All the mandatory requirements have been appropriately
complied with and the non-mandatory requirements are
dealt with at the end of this Report.
8. Means Of Communicationi. Quarterly Results and publication thereof in newspapers.Quarterly, half-yearly and annual results are published in
prominent dailies which inter alia include Business Standard
(English), The Economic Times (English) and Aajkal (Bengali)
in the form prescribed by Clause 41 of the Listing Agreements
with the Stock Exchanges.
ii. Display in WebsiteFinancial Results, Shareholding Pattern, Information
Update etc., are displayed on the Company’s
Website www.mcleodrussel.com
iii. Display of Official news and presentation made to the Shareholders/ Institutional Investors/Analysts:
Press releases and Information Updates as and when made
are displayed in the Company’s website and also sent to the
Stock Exchanges to enable them to put the same on their
own websites.
iv. Management Discussion and Analysis forms a part of the Company’s Annual Report.
9. General shareholders’ informationi. 15th Annual General Meeting Date and Time : 26th July 2013 (Friday) at 11.30 a.m.
Venue : Kala Mandir, 48, Shakespeare Sarani,
Kolkata – 700 017
ii. Financial Year : 1st April to 31st March.
iii. Dates of Book Closure
The Share Transfer Books and Register of Members of the
Company will remain closed from 18th July 2013 to 26th July
2013 (both days inclusive) for the purpose of the Annual
General Meeting of the Company and payment of Dividend.
iv. Dividend Payment Date
The Dividend, if declared, shall be paid/credited on or after
30th July 2013.
v. Listing on Stock Exchanges
The Company’s Shares are listed at the following Stock
Exchanges and the Annual Listing Fees for the year 2013-
2014 have been paid to all these Stock Exchanges.
Name of the Stock Exchange
1. Bombay Stock Exchange Limited [BSE]
2. National Stock Exchange of India Limited [NSE]
3. The Calcutta Stock Exchange Association Limited [CSE]
Annual Report 2012-13 3938
vi. Stock Code
Name of the
Stock Exchanges
[where the
Company’s
Shares are listed]
Date of Listing
of 5,59,05,402
Equity Shares of
Rs.5/- each of
the Company
Date of Listing
of 4,25,25,000
Equity Shares of
Rs.5/- each of
the Company
Date of Listing
of 99,07,305
Equity Shares of
Rs.5/- each of
the Company
Date of Listing of
11,18,028 Equity
Shares of Rs.5/-
each of the
Company
Stock Code
BSE 28.07.2005 21.08.2006 09.11.2006 01.08.2008 532654
NSE 29.07.2005 28.08.2006 09.11.2006 18.08.2008 MCLEODRUSS
CSE 23.08.2005 31.08.2006 16.11.2006 24.09.2008 10023930
Demat ISIN for NSDL & CSDL : INE942G01012
vii. Stock Price Data:
Month Bombay Stock Exchange National Stock Exchange
High Rs. Low Rs. Share Price
(closing) Rs.
Sensex (closing) High Rs. Low Rs.
April 2012 288.20 262.40 280.15 17318.81 285.00 262.25
May 2012 284.70 254.15 279.85 16218.53 285.65 254.25
June 2012 302.75 270.00 298.00 17429.98 302.60 267.35
July 2012 345.00 294.25 321.20 17236.18 346.45 293.65
August 2012 329.00 296.00 311.50 17429.56 329.80 295.25
September 2012 341.00 316.95 323.65 18762.74 340.95 317.30
October 2012 332.95 293.05 302.65 18505.38 332.95 293.10
November 2012 367.30 302.55 352.20 19339.90 367.45 265.55
December 2012 372.00 342.50 349.25 19426.71 372.00 342.25
January 2013 364.00 331.40 361.90 19894.98 364.40 331.80
February 2013 386.95 343.20 356.70 18861.54 386.45 321.25
March 2013 374.85 325.15 349.75 18835.77 374.95 319.00
APR
2012
Se
ns
ex
Mclo
ed
Ru
ss
el S
ha
re P
rice
400
350
300
250
200
150
100
50
0May
2012
Jun
2012
July
2012
Aug
2012
Sept
2012
Oct
2012
Nov
2012
Dec
2012
Jan
2013
Feb
2013
Mar
2013
Sensex (Closing) Share Price (closing)
0
40002000
6000800010000120001400016000180002000022000
viii. Performance in comparison to BSE Sensex:Share Price Performance (April 2012 to March 2013)
Share Price (Closing) Sensex (Closing)
Performance of Mcleod Russel Share price in comparison to BSE Sensex 2012-13
McLeod Russel India Limited
ix. Registrar and Share Transfer Agents:In accordance with the SEBI directive vide Circular Nos.
D&CC/FITTC/CIR-15/2002 dated 27th December 2002 the
Company appointed the following SEBI registered Agency
as the Common Registrar and Share Transfer Agents of the
Company for both the Physical and Dematerialized segments
with effect from 14th March 2005:-
Maheshwari Datamatics Pvt Ltd.
6, Mangoe Lane, 2nd Floor, Surendra Mohan Ghosh Sarani,
Kolkata – 700001. TEL. : (033) 2243-5809; 2243-5029;
2248-2248, FAX : (033) 2248-4787
E-MAIL : mdpl@cal.vsnl.net.in
x. Share Transfer System: The requests for transfer of shares held in physical mode
should be lodged at the office of the Company’s Registrar
& Share Transfer Agents, Maheshwari Datamatics Private
Limited (Registered with SEBI), 6 Mangoe Lane, 2nd Floor,
Surendra Mohan Ghosh Sarani, Kolkata 700001 or at the
Registered Office of the Company. The Board of Directors
has unanimously delegated the powers of share transfer,
transmission, sub-division, consolidation and issue of
duplicate Share Certificate/s to a Share Transfer Committee
comprising Messrs. R. Takru, A. Monem and K. K. Baheti in
order to expedite transfer, transmission etc. in the physical
form. During the first half of the year the Committee met once
in every fortnight and thereafter the Committee has been
holding meetings every week for approving Share Transfers
and for other related activities. Share Transfers are registered
and returned in the normal course within an average period
of 14 days, if the transfer documents are found technically in
order and complete in all respects.
The Company conducts a weekly review of the functions of the
Registrar and Share Transfer Agent for upgrading the level of
service to the Shareholders. Weekly review is also conducted
on the response to the shareholders pertaining to their
communication and grievances, if any.
xi. (a) Distribution of shareholding as on 31st March 2013
Size of holding No. of holders Percentage No. of Shares Percentage
1 to 500 51,626 93.08 51,00,125 04.66
501 to 1000 2,249 04.05 16,36,573 01.50
1001 to 2000 850 01.53 12,32,385 01.12
2001 to 3000 225 00.41 5,66,035 00.52
3001 to 4000 81 00.15 2,88,116 00.26
4001 to 5000 54 00.10 2,50,712 00.23
5001 to 10000 113 00.20 8,39,666 00.77
10001 and above 268 00.48 9,95,42,123 90.94
Total 55,466 100.00 10,94,55,735 100.00
(b) Shareholding Pattern as on 31st March 2013
Sr. No. Category Number of Shareholders No. of Shares held % of holding
1 Promoters 22 5,00,33,585 45.71
2 Mutual Funds/UTI 25 20,46,356 01.87
3 Financial Institutions/Insurance Companies/Banks 97 18,87,341 01.72
4 Central/State Government(s) 1 112 00.00
5 FIIs 158 3,82,84,458 34.98
6 Bodies Corporate 869 59,91,956 05.48
7 NRIs/OCBs 665 5,35,729 00.49
8 Resident Individuals 53,526 1,03,22,705 09.43
9 Trust 13 1,95,466 00.18
10 Clearing Member 90 1,58,027 00.14
Total: 55,466 10,94,55,735 100.00
Annual Report 2012-13 4140
xii. Dematerialization of Shares and liquidity:The Company’s Shares form part of the SEBI’s Compulsory
Demat segment for all Shareholders/investors. The Company
has established connectivity with both the Depositories
viz. National Securities Depository Limited [NSDL] and
Central Depository Services (India) Limited [CDSL] through
the Registrar, Maheshwari Datamatics Private Limited, 6
Mangoe Lane, 2nd Floor, Surendra Mohan Ghosh Sarani,
Kolkata 700001. Requests for dematerializations of shares
are processed and confirmations are being given to the
respective Depositories.
As on 31st March 2013, 97.35% of the Company’s equity
shares of Rs.5/- each representing 10,65,55,047 shares were
in dematerialized form and the balance 2.65% representing
29,00,688 shares were in physical form. The entire
shareholding of the Promoters is in the dematerialized form.
xiii. Outstanding GDRs/ADRs/Warrants or any Convertible Instruments:The Company has not issued any GDRs/ADRs/Warrants or
any convertible instruments.
xiv. Plant Locations: Tea manufacturing plants are located at the following Tea
Estates –
xv. Address for correspondence for Share and related services:Any assistance regarding Share transfers and transmission,
change of address, non-receipt of share certificate/duplicate
share certificate, demat and other matters and for redressal
of all share-related complaints and grievances, the Members
are requested to write to or contact the Registrar & Share
Transfer Agents or the Share Department of the Company
for all their queries or any other matter relating to their
shareholding in the Company at the addresses given below:
i. The Company’s Registered Office at :
McLEOD RUSSEL INDIA LIMITED
‘Four Mangoe Lane’, Surendra Mohan Ghosh Sarani,
Kolkata – 700001.
TEL : 033-2210-1221, 033-2243-5391, 033-2248-9434,
033-2248-9435
FAX : 91-33-2248-3683, 91-33-2248-8114,
E-Mail: administrator@mcleodrussel.com
Locations Tea Estates
Assam:-
Bishnauth Dekorai, Mijicajan, Monabarie, Pertabghur
Dhunseri Behora, Bukhial
Doom Dooma Baghjan, Bordubi, Koomsong, Phillobari, Beesakopie/Daimukhia, Raidang, Samdang
East Boroi Bargang, Behali, Boroi, Dufflaghur, Halem, Nya Gogra
Jorhat Hunwal
Mangaldai Attareekhat, Bhooteachang, Borengajuli, Corramore, Dimakusi, Paneery
Margherita Bogapani, Dehing, Dirok, Margherita, Namdang
Moran Attabarrie, Dirai, Lepetkatta, Moran, Rajmai, Sepon
Thakurbari Addabarie, Harchurah, Nilpur, Phulbari, Rupajuli, Tarajulie, Tezpore & Gogra
Tingri Dirial, Itakhooli, Keyhung, Mahakali
West Bengal:-
Dooars Bhatpara, Central Dooars, Chuapara, Jainti/Chuniajhora, Mathura
McLeod Russel India Limited
ii. Registrar and Share Transfer Agents’
Registered Office at:
Maheshwari Datamatics Pvt Ltd.
6, Mangoe Lane, 2nd Floor
Surendra Mohan Ghosh Sarani
Kolkata – 700001.
Tel. : (033) 2243-5029; 2243-5809; 2248-2248,
Fax : (033) 2248-4787
E-mail: mdpl@cal.vsnl.net.in
In case of any difficulty, the Compliance Officer at the
Registered Office of the Company may be contacted.
Special E-mail Id. :
investors@mcleodrussel.com
Compliance of Non-Mandatory Requirements(i) The Board:
During the financial year ended 31st March 2013, a part of the
expenses for maintenance of the office of the Non-Executive
Chairman was borne by the Company.
(ii) Remuneration Committee:
The Company has a Remuneration Committee comprising
Mr. B. Bajoria, Dr. R. Srinivasan and Mr. R. Sen as Members as
stated in Paragraph 4 of this Report.
(iii) Shareholder Rights:
Half-yearly results including summary of the significant
events are presently not being sent to the Shareholders of
the Company.
(iv) Audit Qualification: Nil
(v) Training of Board Members:
The Company has not yet adopted any training programme
for its Directors.
(vi) Mechanism for evaluating Non-Executive Board
Members:
There is no mechanism for evaluating Non-Executive Board
Members at present. All the Non-Executive Board Members
are having requisite qualification and expertise in the
respective functional areas.
(vii) Whistle Blower Policy:
There is no Whistle Blower Policy at present.
For and on behalf of the Board
Place : Kolkata A. Khaitan K.K.Baheti
Date : 27th May 2013 Managing Director Wholetime Director & CFO
Annual Report 2012-13 4342
DECLARATION REGARDING COMPLIANCE BY BOARD
MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH
THE COMPANY’S CODES OF CONDUCT
AUDITORS’ CERTIFICATE REGARDING COMPLIANCE OF
CONDITIONS OF CORPORATE GOVERNANCE
This is to confirm that the Company has adopted two separate Codes of Conduct to be followed by the Members of the Board
and Senior Management Personnel of the Company respectively in compliance with Clause 49 of the Listing Agreement with the
Stock Exchanges. Both these Codes are available on the Company’s website.
I confirm that the Company has in respect of the financial year ended 31st March 2013 received from the Members of the Board
and Senior management personnel, a Declaration of Compliance with the Code of Conduct as applicable to them.
Place : Kolkata A. Khaitan
Date: 27th May 2013 Managing Director (CEO)
To the Members of McLeod Russel India Limited
We have examined the compliance of conditions of Corporate Governance by McLeod Russel India Limited, for the year ended
31st March 2013, as stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges in India.
The compliance of conditions of Corporate Governance is the responsibility of the Company’s management. Our examination
was carried out in accordance with the Guidance Note on Certification of Corporate Governance (as stipulated in Clause 49 of the
Listing Agreement), issued by The Institute of Chartered Accountants of India and was limited to procedures and implementation
thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit
nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.
For Price Waterhouse
Firm Registration Number 301112E
Chartered Accountants
Place : Kolkata Prabal Kr. Sarkar
Date: 27th May 2013 Partner
Membership No: 52340
McLeod Russel India Limited
45
independent auditors’ report
To the Members of McLeod Russel India Limited
Report on the Financial Statements1. We have audited the accompanying fi nancial statements of McLeod Russel India Limited (the “Company”), which comprise
the Balance Sheet as at March 31, 2013, and the Profi t and Loss Statement and Cash Flow Statement for the year then
ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under
reference to this report. Th e aforesaid Financial Statements incorporate the transactions and balances relating to the
Company’s Marketing & Representative Offi ce, United Kingdom, which we have audited on the basis of returns, records,
information and explanations received from the said Marketing and Representative Offi ce of the Company not visited by
us during the year.
Management’s Responsibility for the Financial Statements2. Th e Company’s Management is responsible for the preparation of these fi nancial statements that give a true and fair
view of the fi nancial position, fi nancial performance and cash fl ows of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of ‘the Companies Act, 1956’ of India (the “Act”). Th is responsibility
includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of
the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility3. Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Th ose Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the fi nancial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the fi nancial
statements. Th e procedures selected depend on the auditors’ judgment, including the assessment of the risks of
material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the
auditors consider internal control relevant to the Company’s preparation and fair presentation of the fi nancial statements
in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management,
as well as evaluating the overall presentation of the fi nancial statements.
5. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.
Opinion6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying
fi nancial statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of aff airs of the Company as at March 31, 2013;
(b) in the case of the Profi t and Loss Statement, of the profi t for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fl ows for the year ended on that date.
46
Report on Other Legal and Regulatory Requirements7. As required by ‘the Companies (Auditor’s Report) Order, 2003’, as amended by ‘the Companies (Auditor’s Report)
(Amendment) Order, 2004’, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the
Act (hereinafter referred to as the “Order”), and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that: (a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary
for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our
examination of those books and proper returns adequate for the purposes of our audit have been received from the
Marketing & Representative Offi ce not visited by us;
(c) Th e Balance Sheet, the Profi t and Loss Statement and the Cash Flow Statement dealt with by this Report are in
agreement with the books of account and with the returns received from the Marketing & Representative Offi ce not
visited by us;
(d) In our opinion, the Balance Sheet, the Profi t and Loss Statement and the Cash Flow Statement dealt with by this
report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act;
(e) On the basis of written representations received from the directors, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on March 31, 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
For Price Waterhouse Firm Registration Number: 301112E
Chartered Accountants
Prabal Kr. SarkarKolkata Partner27th May, 2013 Membership Number 52340
independent auditors’ reportTo the Members of McLeod Russel India LimitedReport on the Financial Statement
47
i. (a) Th e Company is maintaining proper records showing full particulars, including quantitative details and situation, of
fi xed assets.
(b) Th e fi xed assets are physically verifi ed by the Management according to a phased programme designed to cover all
the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. Pursuant to the programme, a portion of the fi xed assets has been physically verifi ed
by the Management during the year and no material discrepancies have been noticed on such verifi cation.
(c) In our opinion, and according to the information and explanations given to us, a substantial part of fi xed assets has
not been disposed off by the Company during the year.
ii. (a) Th e inventory (excluding stocks with third parties) has been physically verifi ed by the Management during the year.
In respect of inventory lying with third parties, these have substantially been confi rmed by them and/or have been
verifi ed with reference to subsequent sale. In our opinion, the frequency of verifi cation is reasonable.
(b) In our opinion, the procedures of physical verifi cation of inventory followed by the Management are reasonable and
adequate in relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper
records of inventory. Th e discrepancies noticed on physical verifi cation of inventory as compared to book records
were not material.
iii. (a) Th e Company has granted unsecured demand loan to a company covered in the register maintained under Section
301 of the Act. Th e maximum amount involved during the year and the year-end balance of such loan aggregated
to Rs. 360.00 lakhs and Rs. 360.00 lakhs, respectively. Th e Company has not granted any secured/ unsecured
loans to fi rms or other parties covered in the register maintained under Section 301 of the Act.
(b) In our opinion, the rate of interest and other terms and conditions of such loan are not prima facie prejudicial to the
interest of the Company.
(c) In respect of the aforesaid loan, repayment of the principal amount and the payment of interest were not due at
the year end. Th erefore, the provision of clause 4(iii) (d) is not applicable to the company.
(d) Th e Company has not taken any loans, secured or unsecured, from companies, fi rms or other parties covered in
the register maintained under Section 301 of the Act. Th erefore, the provisions of Clause 4(iii) (f) and (g) of the said
Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations given to us, there is an adequate internal control
system commensurate with the size of the Company and the nature of its business for the purchase of inventory and
fi xed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records
of the Company, and according to the information and explanations given to us, we have neither come across, nor have
been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system.
v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts
or arrangements that need to be entered into the register maintained under section 301 of the Companies Act,
1956 have been so entered.
(b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance
of such contracts or arrangements and exceeding the value of Rupees Five Lakhs in respect of any party during the
year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant
time.
Annexure To The Independent Auditors’ ReportReferred to in paragraph 7 of the Independent Auditors’ Report of even date to the members of McLeod Russel India Limited on the Financial Statements as of and for the year ended March 31, 2013
48
vi. Th e Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act
and the rules framed there under.
vii. In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to
the rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause
(d) of sub-section (1) of Section 209 of the Act, and are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a detailed examination of the records with a view
to determine whether they are accurate or complete.
ix. (a) According to the information and explanations given to us and the records of the Company examined by us, in our
opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, investor
education and protection fund, employees’ state insurance, income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and other material statutory dues, as applicable, with the appropriate authorities. As explained by
the Management, Employees’ State Insurance Scheme is not applicable to the Company.
(b) According to the information and explanations given to us and the records of the Company examined by us, the
particulars of dues of income tax, sales tax, wealth tax, service tax, customs duty, excise duty as at March 31, 2013
which have not been deposited on account of a dispute, are as follows:
x. Th e Company has no accumulated losses as at the end of the fi nancial year and it has not incurred any cash losses in
the fi nancial year ended on that date or in the immediately preceding fi nancial year.
xi. According to the records of the Company examined by us and the information and explanation given to us, the Company
has not defaulted in repayment of dues to any bank as at the balance sheet date. Th e Company did not have any dues
outstanding to any debentures holders or fi nancial institutions as at the beginning of the year nor did it obtain any such
loans during the year.
Name of the statute Nature of dues Amount
( Rs. Lakhs)
Period to which the
amount relates
Forum where the
dispute is pending
Central Sales Tax Sales tax 4.60 2009-10 Sr. Joint
Commissioner of
Sales Tax
Assam General
Sales Tax Act
Sales Tax 23.32 1999-00 DCT Appeal, Nagaon
Value Added Tax Act Sales Tax 24.22 2008-09 Sr. Joint
Commissioner of
Sales Tax
Income Tax Act,
1961
Tax deducted at source
and Interest (Refer Note
39 to Financial Statement)
4578.00 2005-06 CIT (Appeals)
Fringe Benefi t Tax 66.96 2008-09 Income Tax
Appellate Tribunal
Tax Deducted at Source 49.13 2008-09 to
2011-12
Appeal/Rectifi cation
Finance Act, 1994 Service tax 70.13 2004-05 to 2007-
08
Commissioner
Central Excise
Annexure To The Independent Auditors’ ReportReferred to in paragraph 7 of the Independent Auditors’ Report of even date to the members of McLeod Russel India Limited on the Financial Statements for the year ended March 31, 2013
49
xii. Th e Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures
and other securities. Th erefore, the provisions of Clause 4(xii) of the Order are not applicable to the Company.
xiii. As the provisions of any special statute applicable to chit fund/ nidhi/ mutual benefi t fund/ societies are not applicable
to the Company, the provisions of Clause 4(xiii) of the Order are not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.
Accordingly, the provisions of Clause 4(xiv) of the Order are not applicable to the Company.
xv. In our opinion, and according to the information and explanations given to us, the Company has not given any guarantee
for loans taken by others from banks or fi nancial institutions during the year. Accordingly, the provisions of Clause 4(xv)
of the Order are not applicable to the Company.
xvi. In our opinion, and according to the information and explanations given to us, the term loans have been applied, on an
overall basis, for the purposes for which they were obtained.
xvii. According to the information and explanation given to us and on an overall examination of the balance sheet of the
Company, we report that the company has used funds raised on short term basis for long-term investment. Th e
company has obtained funds by way of short term borrowings aggregating Rs. 6,938.78 lakhs on a short term basis,
which has been used for long term investment in Tangible Assets and Long-term Loans and Advances.
xviii. Th e Company has not made any preferential allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act during the year. Accordingly, the provisions of Clause 4(xviii) of the Order are
not applicable to the Company.
xix. Th e Company has not issued any debentures during the year and does not have any debentures outstanding as at the
beginning of the year and at the year end. Accordingly, the provisions of Clause 4(xix) of the Order are not applicable to
the Company.
xx. Th e Company has not raised any money by public issues during the year. Accordingly, the provisions of Clause 4(xx) of
the Order are not applicable to the Company.
xxi. During the course of our examination of the books and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, and according to the information and explanations given to us, we have
neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have
we been informed of any such case by the Management.
For Price Waterhouse Firm Registration Number: 301112E
Chartered Accountants
Prabal Kr. SarkarKolkata Partner27th May, 2013 Membership Number 52340
Annexure To The Independent Auditors’ ReportReferred to in paragraph 7 of the Independent Auditors’ Report of even date to the members of McLeod Russel India Limited on the Financial Statements for the year ended March 31, 2013
50
Balance Sheet As At 31St March, 2013
Note 31st March 2013 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital 2 5472.79 5472.79
Reserves and Surplus 3 174097.14 179569.93 160667.50 166140.29
Non-current Liabilities
Long - term Borrowings 4 1750.00 4100.00
Deferred Tax Liabilities (Net) 5 6969.23 6470.06
Long - term Provisions 6 7204.63 15923.86 7145.87 17715.93
Current Liabilities
Short-term Borrowings 7 14276.39 10401.23
Trade Payables 8 7017.20 6930.67
Other Current Liabilities 9 9398.43 9545.66
Short-term Provisions 10 13755.09 44447.11 11612.07 38489.63
TOTAL 239940.90 222345.85
ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets 11 152790.89 147427.22
Intangible Assets 12 3522.25 3187.50
Capital Work-in-Progress 2538.99 2684.26
Intangible Assets under Development - 158852.13 399.34 153698.32
Non-Current Investments 13 24282.49 24517.19
Long - term Loans and Advances 14 19953.66 15135.51
Other Non-current Assets 15 2496.96 46733.11 2496.96 42149.66
Current Assets
Inventories 16 11251.02 7499.85
Trade Receivables 17 1622.76 1465.16
Cash and Bank Balances 18 379.59 331.11
Short-term Loans and Advances 19 16385.96 13243.12
Other Current Assets 20 4716.33 34355.66 3958.63 26497.87
TOTAL 239940.90 222345.85
Th is is the Balance Sheet
referred to in our report of even date Th e notes are an integral part of these Financial Statements
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
51
PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
Th is is the Profi t and Loss Statement
referred to in our report of even date Th e notes are an integral part of these Financial Statements
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
Note Year ended 31st March 2013
Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs
Revenue from Operations 21 137802.28 123783.08
Other Income 22 4007.99 4271.35
Total Revenue 141810.27 128054.43
Expenses:
Cost of Materials Consumed 23 19731.38 11256.54
Purchase of Tea 1.14 -
Changes in Inventories of Finished Goods 24 (762.07) 979.21
Employee Benefi ts Expense 25 47913.52 42621.48
Finance Costs 26 4477.79 4724.44
Depreciation and Amortisation Expense 27 2871.42 2940.14
Other Expenses 28 41681.52 38483.95
Total Expenses 115914.70 101005.76
Profi t before Exceptional Items and Tax 25895.57 27048.67
Exceptional Item 53 233.44 1381.97
Profi t before Tax 25662.13 25666.70
Tax expense:
Current Tax 4965.00 5150.00
Less: MAT Credit (1779.88) (1022.19)
Provision/ (Write back) relating to earlier years (592.16) (607.46)
Deferred Tax 499.17 118.81
Profi t for the Year 22570.00 22027.54
Earnings per Equity Share:
[Nominal Value per share : Rs. 5/- (Previous Year : Rs. 5/-)] 40
- Basic 20.62 20.12
- Diluted 20.62 20.12
52
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
2012-13 2011-12
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profi t before tax 25662.13 25666.70
Adjustments for :
Provision for Doubtful Debts 177.06 3.10
Provision for Diminution in Long -Term Investments 233.44 1500.00
Provision for doubtful advances 11.54 -
Liabilities no longer required written back (297.76) (367.22)
Bad Debts written off 2.28 -
Reversal of Impairment Loss (350.00) -
Depreciation on Tangible Assets 2941.09 2690.14
Amortisation on Intangible Assets 280.33 250.00
Profi t on Disposal of Fixed Assets (Net) (365.67) (155.32)
Profi t on Disposal of Long Term Trade Investments - (118.03)
Interest Subsidy - (567.81)
Dividend on Long Term Trade Investments (675.44) (357.28)
Interest Income (2290.22) (2536.15)
Interest Expense 4343.31 4461.98
Unrealised Foreign Exchange Losses/ (Gains) 127.38 549.46
Operating Profi t before Working Capital changes 29799.47 31019.57
Changes in Working Capital
Increase / (Decrease) In Trade Payables 86.52 1315.86
Increase / (Decrease) In Other Current Liabilities (76.07) 1452.75
Increase / (Decrease) In Provision 475.44 125.24
(Increase) / Decrease In Trade Receivables (336.94) (342.46)
(Increase) / Decrease In Inventories (3751.17) (459.53)
(Increase) / Decrease In Loans and Advances and Fixed
Deposits (4946.12) (5122.41)
(Increase) / Decrease In Other Current Assets (520.88) (606.64)
(Increase) / Decrease In Other Non Current Assets - (9069.22) (0.95) (3638.14)
Cash Generated from operations 20730.25 27381.43
Taxes paid (Net of Refunds) (5345.46) (5972.03)
Net Cash from Operating Activities 15384.79 21409.40 B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (7615.02) (11827.40)
Purchase of Investments - (72.92)
Disposal of Fixed Assets 562.52 264.14
Capital Subsidy Received 232.28 287.25
Loans Recovered /(given) (1097.47) 1,528.25
Redemption / Sale of Long Term Trade Investments 1.26 209.76
Interest Received 2046.24 1,964.00
Interest on Tax Refunds 7.16 189.79
Dividend Received 675.44 357.28
Net Cash used for Investing Activities (5187.59) (7099.85)
53
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
2012-13 2011-12
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Short-term Borrowings 3875.16 3582.70
Repayment of Long-term Borrowings (2300.00) (7563.44)
Interest paid (4364.87) (4509.68)
Dividend paid / Transferred to Investor Education and
Protection Fund (6496.63) (5416.28)
Dividend Tax paid (862.46) (466.74)
Net Cash used for Financing Activities (10148.80) (14373.44)D. EFFECT OF FOREIGN EXCHANGE DIFFERENCE ON
Cash and Cash Equivalents 0.08 0.78
Net Increase/(Decrease) in Cash and Cash Equivalents
(A+B+C+D) 48.48 (63.12)
Cash and Cash Equivalents at the beginning of the year
(Refer Note 18) 331.11 394.23
Cash and Cash Equivalents at the end of the year (Refer
Note 18) * 379.59 331.11
Changes in Cash and Cash Equivalents - Increase/ (Decrease) 48.48 (63.12)* Includes the following balances which are available for use
for specifi c purposes.
Unpaid Dividend Account 241.95 171.24
Escrow Accounts/Fractional Share sale Proceeds
Account 0.61 0.61
(a) Th e above Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard
3 on Cash Flow Statement prescribed under the Companies Act, 1956.
(b) Also refer notes 54 to the Financial Statements.
(c) Notes referred to above form an integral part of the Cash Flow Statement.
Th is is the Cash Flow Statement
referred to in our report of even date
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
54
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of Preparation
Th ese fi nancial statements have been prepared in accordance with the generally accepted accounting principles
in India under the historical cost convention on accrual and prudent basis, except for certain tangible assets which
are being carried at revalued amounts.
Th ese fi nancial statements have been prepared to comply, in all material aspects, with the applicable accounting
standards notifi ed under Section 211 (3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the
other relevant provisions of the Companies Act, 1956.
All assets and liabilities have been classifi ed as current or non-current as per the Company’s normal operating
cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of
products and the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current – non
current classifi cation of assets and liabilities.
1.2 Tangible Assets
Tangible Assets are stated at acquisition cost or valuation net of accumulated depreciation and accumulated
impairment losses, if any. Cost of extension planting is capitalised. An impairment loss is recognised wherever
the carrying amount of the tangible assets of a cash generating unit exceeds its net selling price or value in use,
whichever is higher. Assessment is also done at each balance sheet date as to whether there is any indication
that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have
decreased.
1.3 Intangible Assets
Intangible assets are stated at acquisition cost net of accumulated amortisation and accumulated impairment
losses, if any. An impairment loss is recognised whenever the carrying amount of the intangible assets of a cash
generating unit exceeds its net selling price or value in use, whichever is higher. Assessment is also done at each
balance sheet date as to whether there is any indication that an impairment loss recognised for an asset in prior
accounting periods may no longer exist or may have decreased.
1.4 Depreciation and Amortisation
Depreciation on straight line method is provided on book value of tangible Fixed Assets (other than Estate and
Development and Freehold Land) in the manner and at rates as per Schedule XIV to the Companies Act, 1956.
Items of fi xed assets for which related actual cost do not exceed Rs.5,000 are fully depreciated in the year of
purchase.
Intangible fi xed assets are amortised on straight line method over their estimated economic life.
Additional charge of depreciation on amount added on revaluation is adjusted against Revaluation Reserve,
wherever available.
1.5 Investments
Long Term Investments are stated at cost. Provision is made for diminution, other than temporary. Gains/losses
on disposal of investments are recognised as income / expenditure.
55
Notes to Financial Statements (Contd.)
1.6 Inventories
Inventories are valued as under :
- Stores and Spare Parts : At lower of cost (determined under weighted average method) and net realisable
value.
- Finished Goods : At lower of cost (including attributable charges and levies) and net realisable value.
1.7 Revenue Recognition
Sale of products is recognised on completion of sale of goods. Sale includes tea claim and is net of sales return,
sales tax etc. Other items are recognised on accrual basis.
1.8 Employee Benefi ts
a. Short Term Employee Benefi ts:
Th ese are recognised at the undiscounted amount as expense for the year in which the related service is
rendered.
b. Post Employment Benefi t Plans:
Contributions under Defi ned Contribution Plans payable in keeping with the related schemes are recognised
as expenditure for the year.
In case of Defi ned Benefi t Plans, the cost of providing the benefi t is determined using the Projected Unit
Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and
losses are recognised in full in the Profi t and Loss Statement for the period in which they occur. Past service
cost is recognised immediately to the extent that the benefi ts are already vested, and otherwise is amortised
on a straight-line basis over the average period until the benefi ts become vested. Th e retirement benefi t
obligation recognised in the Balance Sheet represents the present value of the defi ned benefi t obligation
as adjusted for unrecognised past service cost, if any, and as reduced by the fair value of plan assets, where
funded. Any asset resulting from this calculation is limited to the present value of any economic benefi t
available in the form of refunds from the plan or reductions in future contributions to the plan.
c. Other Long Term Employee Benefi ts (Unfunded):
Th e cost of providing long-term employee benefi ts is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service
cost are recognised immediately in the Profi t and Loss Statement for the period in which they occur. Long
term employee benefi t obligation recognised in the Balance Sheet represents the present value of related
obligation.
1.9 Borrowing Cost
Interest and other costs in connection with the borrowing of funds by the Company are recognised as an expense in
the period in which they are incurred unless these are attributable to the acquisition and construction of qualifying
assets and added to the cost up to the date when such assets are ready for their intended use.
1.10 Research and Development
Revenue expenditure on Research and Development is recognised as a charge to the Profi t and Loss Statement.
Capital expenditure on assets acquired for Research and Development is added to Fixed Assets.
56
1.11 Accounting for Taxes on Income
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net
profi t or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in
accordance with the taxation laws prevailing in the respective jurisdiction.
Deferred tax is recognised for all the timing diff erences, subject to the consideration of prudence in respect of
deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a
reasonable certainty that suffi cient future taxable income will be available against which such deferred tax assets
can be realised.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Company re-assesses
unrecognised deferred tax assets, if any.
Current tax assets and current tax liabilities are off set when there is a legally enforceable right to set off the
recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax
assets and deferred tax liabilities are off set when there is a legally enforceable right to set off assets against
liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes
on income levied by the same governing taxation laws.
Minimum Alternative Tax credit is recognised as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specifi ed period. Such asset is reviewed at each Balance
Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a
convincing evidence to the eff ect that the Company will pay normal income tax during the specifi ed period.
1.12 Transactions in Foreign Currencies
Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction. Monetary
items denominated in foreign currency are restated at the exchange rate prevailing on the Balance Sheet date.
Foreign currency non-monetary items carried in terms of historical cost are reported using the exchange rate at
the date of the transactions. Exchange diff erences arising on settlement of transactions and/or restatements are
dealt with in the Profi t and Loss Statement.
1.13 Derivative Instruments
Th e Company uses derivative fi nancial instruments such as forward exchange contracts, currency swaps etc.
to hedge its risks associated with foreign currency fl uctuations relating to the underlying transactions, highly
probable forecast transactions and fi rm commitments. In respect of Forward Exchange Contracts with underlying
transactions, the premium or discount arising at the inception of such contract is amortised as expense or income
over the life of contract.
Other Derivative contracts outstanding at the Balance Sheet date are marked to market and resulting loss, if any,
is provided for in the fi nancial statements. Any profi t or losses arising on cancellation of derivative instruments are
recognised as income or expenses for the period.
1.14 Government Grants
Government grants related to specifi c fi xed assets are deducted from gross values of related assets in arriving at
their book value.
Government grants related to revenue are recognised in the Profi t and Loss Statement.
Notes to Financial Statements (Contd.)
57
2. SHARE CAPITAL
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Authorised12,00,00,000 (31.03.2012 - 12,00,00,000) Equity Shares of Rs. 5/- each 6000.00 6000.00
Issued, subscribed and paid-up10,94,55,735 (31.03.2012 -10,94,55,735) Equity Shares of Rs. 5/- each fully paid up 5472.79 5472.79
5472.79 5472.79
Notes to Financial Statements (Contd.)
(a) Rights, preferences and restrictions attached to Shares
Th e Company has only one class of shares referred to as Equity Shares having a par value of Rs. 5/- per share. Each
shareholder is eligible for one vote per share held. Th e Dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
Number of Equity Shares Number of Equity Shares
31st March 2013 31st March 2012Kamal Baheti (Trustee - Borelli Tea Holdings Limited, U.K.) 27067500 27067500
(24.73%) (24.73%)
Williamson Magor & Co. Limited 11649946 11649946
(10.64%) (10.64%)
Williamson Financial Services Limited 5898725 5898725
(5.39%) (5.39%)
CLSA (Mauritius) Limited 6021166 5495459
(5.50%) (5.02%)
(b) Details of Equity Shares held by shareholders holding more than 5 per cent of the aggregate Equity Shares in the Com-
pany
31st March 2013 31st March 20121118028 1118028
(c) Aggregate number of Equity Shares allotted as fully paid up pursuant to Scheme of Arrangement / Schemes of
Amalgamation without payment being received in cash (during fi ve years immediately preceding the Balance Sheet
date)
58
3. RESERVES AND SURPLUS Rs. Lakhs
General
Reserve
[Refer
Note (a)
below]
Securities
Premium
Account
Capital
Reserve
Revaluation
Reserve
Other
Reserve
[Refer
Note (b)
below]
Surplus in
Profi t and
Loss
Statement
Total
Balance at the beginning of the year 64000.00 11053.58 201.68 56022.54 19209.20 10180.50 160667.50
Add : Profi t for the year - - - - - 22570.00 22570.00
Less : Transferred to General Reserve - - - - - 11000.00 11000.00
Add : Transferred from Surplus in Profi t
and Loss Statement 11000.00 - - - - - 11000.00
Less : Adjustment on account of disposal
of Revalued Assets - - - 12.57 - - 12.57
Less : Withdrawn on account of
depreciation on amount added on
Revaluation of Fixed Assets (Refer
Note 27) - - - 363.75 - - 363.75
Add : Adjustment on account of Write
back of Impairment Provison (Refer
Note 11) - - - 200.00 - - 200.00
Less : Proposed Dividend - - - - - 7661.90 7661.90
Less : Tax on Proposed Dividend - - - - - 1302.14 1302.14
Balance at the end of the year 75000.00 11053.58 201.68 55846.22 19209.20 12786.46 174097.14
a) Represents a free reserve not meant for any specifi c purpose.
b) Represents the balance amount of reserve which had arisen on transfer of Bulk Tea Division of Eveready Industries
India Limited.
Notes to Financial Statements (Contd.)
4. LONG-TERM BORROWINGS
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
SECUREDTerm Loans from a BankICICI Bank Limited 1750.00 4100.00
a) Nature of Security
Th e above Term Loans are secured / to be secured by fi rst pari-passu
charge on WM - Brand, fi rst pari passu mortgage of certain tea estates
and subservient mortgage of certain tea estates; and additionally secured
by pledge of certain investments
1750.00 4100.00b) Terms of Repayment
i) Tranches of above Term Loans are repayable in :
Twelve (31.03.2012 - Twenty four) equal monthly instalments 250.00 500.00
Nil (31.03.2012 - Nine) equal monthly instalments - 600.00
Twelve (31.03.2012 - Twenty four) equal monthly instalments 1500.00 3000.00
1750.00 4100.00ii) Interest is payable on monthly basis at base rate plus 2.50% p.a. on
above Term Loans
59
Notes to Financial Statements (Contd.)
6. LONG-TERM PROVISIONS
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Provision for Employee Benefi ts 2853.21 2794.45
Provision for Contingencies (Refer Note 31) 4351.42 4351.42
7204.63 7145.87
7. SHORT-TERM BORROWINGS
Secured Loans repayable on demand from Banks
Cash Credit, Packing Credit and Demand Loans 14276.39 10401.23
a) Nature of Security
Th e above loans are secured/to be secured by equitable fi rst mortgage by
way of deposit of title deeds of immovable properties of certain tea estates
ranking pari passu with others; and hypothecation of tea crop, movable
properties and book-debts present and future of the Company
14276.39 10401.23
8. TRADE PAYABLES
Trade payables (Refer Note 42) 7017.20 6930.67
7017.20 6930.67
5. DEFERRED TAX LIABILITIES (NET)
31st March 2013 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
A. Deferred Tax Liability
i) Diff erence between net book value of depreciable
capital assets as per books vis-à-vis written down
value as per tax laws 8279.49 7615.45
B. Deferred Tax Assets
i) Voluntary Retirement Compensation - 0.08
ii) Items allowed for tax pupose on payment 644.44 548.45
iii) Provision for Doubtful Debts, Advances etc. 665.82 1310.26 596.86 1145.39
Net Deferred Tax Liabilities (A-B) 6969.23 6470.06
9. OTHER CURRENT LIABILITIES
Current maturities of long-term debts 3152.67 2975.22
Interest accrued but not due on borrowings 29.98 51.54
Advances from Customers / Selling Agents 2.09 367.26
Unpaid Dividends [Refer (a) below] 241.95 171.24
Unclaimed Fractional Share Sale Proceeds 0.61 0.61
Deposits Received from Agents 156.50 182.33
Employee Benefi ts Payable 4949.30 4806.52
Remuneration payable to Non -Whole time Directors 18.00 18.86
Statutory dues (including Provident Fund and Tax deducted at Source) 640.10 918.66
Capital Liabilities 207.23 53.42
9398.43 9545.66(a) Th ere are no amounts due for payment to the Investor Education and Protection Fund as at the year end
60
Notes to Financial Statements (Contd.)
10. SHORT-TERM PROVISIONS
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Provision for Employee Benefi ts 1379.11 959.43
Others
Provision for Income Tax (Net of Advance Tax) 1802.59 1576.64
Provision for Fringe Benefi t Tax (Net of Advance Tax) 66.38 100.23
Proposed Dividend 7661.90 6567.34
Provision for Tax on Proposed Dividend 2813.11 2373.43
Provision for Wealth Tax 32.00 35.00
13755.09 11612.07
11. TANGIBLE ASSETS Rs. Lakhs
GROSS BLOCK AT COST OR VALUATION DEPRECIATION NET BLOCK
Particulars As at31st March,
2012
Additions/adjustments
during theyear
Disposal/adjustments
duringthe year
[Refer (a)below]
As at 31st March,
2013
Up to31st March,
2012 [Refer (c)
below]
For the
year
On disposal/adjustments
duringthe year
Impairmentwritten back
during theyear
Up to31st March,
2013 [Refer (c)
below]
Written down
value as at 31st March,
2013
Written down
value as at 31st March,
2012
Estate and
Development 91561.80 16.65 246.41 91332.04 2450.47 - - 353.15 2097.32 89234.72 89111.34
Freehold - Land
[Refer (b) below] 3007.20 1305.12 - 4312.32 - - - - - 4312.32 3007.20
Buildings 56437.88 2789.88 288.12 58939.64 17507.32 1133.13 67.07 405.69 18167.69 40771.95 38930.56
Plant and Equipment 33275.79 3667.40 456.69 36486.50 20296.66 1627.52 195.90 141.16 21587.12 14899.38 12979.12
Furniture and
Fixtures 1458.17 91.43 16.98 1532.62 800.47 68.83 14.10 - 855.20 677.42 657.70
Vehicles 5382.06 559.39 369.53 5571.92 3047.33 397.11 316.00 - 3128.44 2443.48 2334.73
Offi ce Equipment 476.16 20.74 8.15 488.75 236.00 22.16 5.31 - 252.85 235.90 240.16
Computer 602.19 109.60 37.89 673.90 435.78 56.09 33.69 - 458.18 215.72 166.41
31st March, 2013 192201.25 8560.21 1423.77 199337.69 44774.03 3304.84 632.07 900.00 46546.80 152790.89 147427.22 31st March, 2012 184310.54 9045.91 1155.20 192201.25 42453.63 3075.06 754.66 - 44774.03 147427.22
a) Includes Capital Subsidy in respect of following Tangible Assets
- Plant and Equipment - Rs. 175.66 lakhs (31.03.12 - Rs. 271.39 lakhs)
- Vehicles - Rs. 56.62 lakhs (31.03.12 - Rs. 15.86 lakhs)
b) Represents cost of proportionate share of undivided land pertaining to certain portion of a multistoried building
c) Th e opening and closing balance of Depreciation includes an Impairment Loss as set out below:-
During the year 2012-13, reduction in accumulated impairment loss is as under:-
i) Estate and Development Rs. 151.35 lakhs, Building Rs. 173.84 lakhs and Plant & Equipment Rs. 24.81 lakhs aggregating Rs. 350.00 lakhs
upon sale of Jaibirpara Tea Estate.
ii) Estate and Development Rs. 322.01 lakhs, Building Rs. 151.81 lakhs and Plant & Equipment Rs. 76.18 lakhs aggregating Rs. 550.00 lakhs in the
nature of reversal of impairment loss by adopting discounted cash fl ow method ( based on value in use considering the discounting factor at 8.5
% in the current estimate and previous estimate) upon improvement in profi tability of Jainti Tea Estate. Out of this, Rs. 200.00 lakhs has been
added to Revaluation Reserve (Refer Note 3) and Rs. 350.00 lakhs has been subtracted from depreciation for the year (Refer Note 27)
Impairment Loss as at 31st March
2013 2012
Rs. Lakhs Rs. Lakhs
Estate and Development 2087.17 2440.32
Buildings 811.56 1217.25
Plant and Equipment 221.27 362.43
3120.00 4020.00
61
Notes to Financial Statements (Contd.)
13. NON - CURRENT INVESTMENTS
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
(valued at cost unless stated otherwise)
(In Equity Shares of Rs. 10 each fully paid, except otherwise stated)
Long TermTrade
Investments in Equity Instruments - SubsidiariesUnquotedBorelli Tea Holdings Limited (U.K.)
362000 Shares (31.03.2012 - 362000 Shares) of GBP 1 each 22936.98 22936.98
Investments in Equity Instruments - AssociatesUnquotedD1 Williamson Magor Bio Fuel Limited
7281201 Shares (31.03.2012 - 7281201 Shares) 484.35 684.35
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. 1700.00 lakhs (31.03.2012 - Rs. 1500.00 lakhs)]
Investments in Equity Instruments - OthersQuotedMurablack India Limited
500000 Shares (31.03.2012 - 500000 Shares) * *
McNally Bharat Engineering Co. Limited
3052295 Shares (31.03.2012 - 3052295 Shares) 131.25 131.25
Williamson Financial Services Limited
1666853 Shares (31.03.2012 - 1666853 Shares) 485.89 519.33
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. 33.44 lakhs (31.03.2012 - Rs. Nil)]
Eveready Industries India Limited
1663289 Shares of Rs. 5/- each (31.03.2012 - 1663289 Shares) 169.66 169.66
Kilburn Engineering Limited
848168 Shares (31.03.2012 - 848168 Shares) 36.05 36.05
Th e Standard Batteries Limited
1003820 Shares of Re. 1/- each (31.03.2012 - 1003820 Shares) * *
Kilburn Chemicals Limited
350200 Shares (31.03.2012 - 350200 Shares) 14.04 14.04
Kilburn Offi ce Automation Limited
31340 Shares (31.03.2012 - 31340 Shares) 1.27 1.27
12. INTANGIBLE ASSETS Rs. Lakhs
GROSS BLOCK AT COST AMORTISATION NET BLOCK
Particulars As at31st March,
2012
Additions/adjustments
during theyear
Disposal/adjustments
duringthe year
As at 31st March,
2013
Up to31st March,
2012
For the
year
On disposal/adjustments
duringthe year
Up to31st March,
2013
Written downvalue as at 31st March,
2013
Written downvalue as at 31st March,
2012 Goodwill 20.44 - - 20.44 20.44 - - 20.44 - -
Trade Mark [Brand]
[Refer (a) below]
5000.00 - - 5000.00 1812.50 250.00 - 2062.50 2937.50 3187.50
Computer Software - 615.08 - 615.08 - 30.33 - 30.33 584.75 -
31st March, 2013 5020.44 615.08 - 5635.52 1832.94 280.33 - 2113.27 3522.25 3187.50 31st March, 2012 5020.44 - - 5020.44 1582.94 250.00 - 1832.94 3187.50
(a) Th e above represents the trade mark (Brand - WM logo) acquired in January 2005 and the same is being amortised under straight line
method over a working life of 20 years on prudent basis based on the valuation obtained by the management, considering the factors like
eff ective life/utility.
62
Notes to Financial Statements (Contd.)
13. NON - CURRENT INVESTMENTS (Contd.)31st March 2013 31st March 2012
Rs. Lakhs Rs. LakhsUnquotedDewrance Macneill & Co. Limited
200000 Shares (31.03.2012 - 200000 Shares) * *
Kilburn Electricals Limited
28000 Shares (31.03.2012 - 28000 Shares) * *
Cosepa Fiscal Industries Limited
350000 Shares (31.03.2012 - 350000 Shares) * *
Delhi Golf & County Club Private Limited
35750 Shares of Rs.100/- each (31.03.2012 - 35750 Shares) * *
Project India Blend Private Limited
Written off during the year (31.03.2012 - 250000 Shares) - -
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. Nil (31.03.2012 - Rs. 8.25 lakhs)]
Other than TradeInvestments in Equity Instruments - OthersQuotedSuryachakra Seafood Limited
400000 Shares (31.03.2012 - 400000 Shares) * *
UnquotedJalpaiguri Club Limited
523 Shares (31.03.2012 - 523 Shares) - -
Johnston Casting and Allied Industries Limited
Written off during the year (31.03.2012 - 3500 Shares) - -
Indonilpur Marketing Pvt. Ltd.
(formerly known as Nilpur Marketing Pvt. Limited )
12500 Shares (31.03.2012 - 12500 Shares) - -
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. 1.25 lakhs (31.03.2012 - Rs. 1.25 lakhs)]
Nilhat Shipping Company Limited
1000 Shares (31.03.2012 - 1000 Shares) - -
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. 0.10 lakhs (31.03.2012 - Rs. 0.10 lakhs)]
Woodlands Multispeciality Hospital Limited
229610 Shares (31.03.2012 - 229610 Shares) 22.35 22.35
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. 0.01 lakhs (31.03.2012 - Rs. 0.01 lakhs)]
Investments in Preference shares - Others UnquotedTh akurbari Club Limited
56 Preference Shares of Rs.100 each (31.03.2012 - 56 Preference
Shares)
* *
CFL Capital Financial Services Ltd. -
1154790 13% Reedemable Cumulative Preference Shares of Rs.100
each (31.03.2012 - 1154790 Preference Shares)
- -
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. 1160.56 lakhs (31.03.2012 - Rs. 1160.56 lakhs)]
63
Notes to Financial Statements (Contd.)
13. NON - CURRENT INVESTMENTS (Contd.)31st March 2013 31st March 2012
Rs. Lakhs Rs. LakhsInvestments in Government or trust securitiesQuoted
8% Government of India Loan - 2011 - 1.26
9% Government of India Loan - 2013 0.63 0.63
UnquotedNational Defence Bond (Deposited with Excise Authorities) 0.02 0.02
24282.49 24517.19*Amount is below the rouding off norm adopted by the Company.
(a) Aggregate amount of quoted investments 872.23 873.49
Aggregate market value of quoted investments 3023.33 3829.42
Aggregate amount of unquoted investments; 26305.62 26313.87
Aggregate provision for diminution in value of investments 2895.36 2670.17
(b) Following shares are pledged against loans availed by the Company
Name of the Company Nos. Nos. Borelli Tea Holdings Limited (U.K.) 83404 83404
14. LONG-TERM LOANS AND ADVANCES
(Unsecured - considered good unless otherwise stated)
[Refer Note 31]
Capital Advances 699.14 1714.80
Security Deposits;
Considered good 1256.90 1165.28
Considered doubtful 26.25 26.25
Less: Allowance for Doubtful Security Deposits (26.25) (26.25)
Deposits with National Bank for Agriculture and Rural Development 12938.67 8354.14
Other Loans and Advances
MAT Credit Entitlement 2582.51 1385.96
Prepaid Expenses 384.12 405.24
Advances to Suppliers, Service Providers etc. 1217.20 1217.20
Loans to Others 850.00 850.00
Loans to Employees 23.19 38.56
Loans to Related Parties (Key Management Personnel) (a) 1.93 4.33
19953.66 15135.51(a) Such loans to key managerial personnel who are directors were originally initiated as advances to employees in the books of Eveready
Industries India Limited, taken over in terms of a Scheme of Arrangement in 2004-05.
15. OTHER NON-CURRENT ASSETS
[Refer Note 31]
Margin Money Deposit with bank (a) 13.98 13.98
Other Long Term Receivable
From Sale of Tea Estates 198.76 198.76
Interest Accrued on Loans and Deposits 2284.22 2284.22
2496.96 2496.96(a) For issuing Bank Guarantee
16. INVENTORIES
At lower of cost and net realisable value
Finished Goods (Stock of Tea) 2725.47 1963.40
[including in transit Rs. 272.97 lakhs (31.03.2012 - Rs. 191.56 lakhs)]
Stores and Spares 8525.55 5536.45
11251.02 7499.85
64
Notes to Financial Statements (Contd.)
17. TRADE RECEIVABLES
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Debts outstanding for a period exceeding six months from the date they are
due for payment -
Secured
- Considered Good 350.00 350.00
Unsecured
- Considered Good - 203.23
- Considered Doubtful 394.08 217.02
Less: Provision for Doubtful Debts (394.08) (217.02)
Other Debts -
Unsecured
- Considered Good 1272.76 911.93
1622.76 1465.16
19. SHORT-TERM LOANS AND ADVANCES
(Unsecured - considered good unless otherwise stated)
Loans to Related Parties
- Subsidiary 2600.00 1500.00
- Key Managerial Personnel (a) 2.40 2.53
Loans to Others
Considered Good; 408.00 408.00
Considered Doubtful; 248.00 248.00
Less: Provision for Bad and Doubtful Loans (248.00) (248.00)
Deposits with National Bank for Agriculture and Rural Development 4000.00 4000.00
Other Loans and Advances
MAT Credit Entitlement 1058.56 475.23
Advance Tax 2654.17 1489.45
Prepaid Expenses 758.33 703.02
Balance with Excise Authorities 11.33 12.03
Advance for Employee Benefi ts 782.54 725.77
Advance to Employees 571.08 290.76
Advances to Suppliers, Service Providers etc.
Considered Good 2607.32 2606.85
Considered Doubtful 103.69 92.15
Less: Provision for Bad and Doubtful Advances (103.69) (92.15)
Loans to Employees 101.86 203.09
Claim Receivable 130.37 126.39
Tax payment under protest (Refer Note 39) 700.00 700.00
16385.96 13243.12
18. CASH AND BANK BALANCES
A. Cash and Cash EquivalentsCash on hand 35.90 71.32
Balance with banks in Current Accounts 101.13 87.94
Dividend Accounts* 241.95 171.24
Escrow Accounts/Fractional Share Sale Proceeds Account 0.61 0.61
379.59 331.11
(a) Such loans to key managerial personnel who are directors were originally initiated as advances to employees in the books
of Eveready Industries India Limited taken over in terms of a Scheme of Arrangement in 2004-05.
*Earmarked for payment of unclaimed dividend
(a) Margin Money Deposit kept with bank for issuing guarantee in favour of Th ird party has been disclosed under Other Non-
Current Assets (Refer Note 15)
65
Notes to Financial Statements (Contd.)
20. OTHER CURRENT ASSETS
31st March 2013Rs. Lakhs
31st March 2012Rs. Lakhs
(Unsecured - considered good unless otherwise stated)
Interest Accrued on Loans and Deposits
Considered good; 1126.05 889.23
Considered Doubtful 173.35 173.35
Less: Provision for Doubtful Interest Receivable (173.35) (173.35)
Subsidies receivable from Government 1628.78 1586.21
Compensation receivable from Government 77.79 36.98
Accrued duty exemption benefi ts pertaining to exports 1883.71 1446.21
4716.33 3958.63
21. REVENUE FROM OPERATIONS
Year ended 31st March 2013 Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
Sale of Products
- Tea 133707.15 120289.49
- Tea Waste 257.16 133964.31 72.36 120361.85
Other Operating Revenues
Consultancy Fees 126.68 111.15
Subsidy on Orthodox Tea 228.40 100.84
Replantation Subsidy 382.50 546.53
Transport Subsidy 356.47 301.78
Accrued duty exemption entitlement and other
Benefi ts relating to exports / premium on sale thereof 2743.92 3837.97 2360.93 3421.23
137802.28 123783.08
22. OTHER INCOME
Interest Income (Gross)
On Deposits 973.23 792.58
On Loans 1309.83 1553.78
On Tax Refunds 7.16 2290.22 189.79 2536.15
Interest Subsidy - 567.81
Dividend on Long Term Trade Investments
From Subsidiary Company 639.66 263.19
From Others 35.78 94.09
Insurance Claims 302.20 227.52
Sundry Income 76.70 60.05
Profi t on Disposal of Fixed Assets (net) 365.67 155.32
Liabilities no Longer Required Written Back 297.76 367.22
4007.99 4271.35
66
Notes to Financial Statements (Contd.)
23. COST OF MATERIALS CONSUMED
Year ended31st March 2013
Rs. Lakhs
Year ended31st March 2012
Rs. LakhsGreen Leaf (purchased and consumed) 19731.38 11256.54
19731.38 11256.54
24. CHANGES IN INVENTORIES OF FINISHED GOODS
Stock of Tea at the beginning of the year 1963.40 2942.61
Less: Stock of Tea at the end of the year 2725.47 1963.40
(Increase)/Decrease (762.07) 979.21
25. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages 37777.75 33307.63
Contribution to Provident and Other Funds 4955.26 4492.37
Labour and Staff Welfare 5180.51 4821.48
47913.52 42621.48
26. FINANCE COSTS
Year ended 31st March 2013 Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
Interest Expense
On Fixed Loans 1365.77 1520.51
Others 2977.54 4343.31 2941.47 4461.98
Other Borrowing Costs 134.48 262.46
4477.79 4724.44
27. DEPRECIATION AND AMORTISATION EXPENSE
Depreciation on Tangible Assets 3304.84 3075.06
Less : Withdrawn on account of Depreciation on amount
added on Revaluation of Tangible Assets (Refer
Note 3) (363.75) (384.92)
Less : Reversal of Impairment Loss (Refer Note 11) (350.00) 2591.09 - 2690.14
Amortisation of Intangible Assets 280.33 250.00
2871.42 2940.14
67
Notes to Financial Statements (Contd.)
29. Schemes of Amalgamation/Scheme of Arrangement given eff ect to in earlier years
Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the
Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor
companies (including other companies which were amalgamated with the transferor companies from time to time).
30. Employee Benefi ts :
I. Post Employment Defi ned Contribution Plans:
During the year an amount of Rs. 3602.80 lakhs (31st March 2012 - Rs. 3239.20 lakhs) has been recognised as
expenditure towards Defi ned Contribution plans of the Company.
II. Post Employment Defi ned Benefi t Plans:
a) Gratuity (Funded)
Th e Company’s gratuity scheme, a defi ned benefi t plan, covers the eligible employees and is administered
through certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance
companies/trustees themselves, make payments to vested employees or their nominees upon retirement,
death, incapacitation or cessation of employment, of an amount based on the respective employee’s salary
and tenure of employment subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs upon completion of
fi ve years of service.
Consumption of Stores and Spare Parts 5120.74 4994.71
Consumption of Packing Materials 1062.03 1118.46
Power and Fuel 14434.91 11945.20
Rent 68.48 220.15
Lease Rent 18.75 -
Repairs
- Buildings 1384.47 1706.62
- Machinery 2455.93 2272.16
- Others 1201.49 1224.23
Insurance 777.32 546.64
Rates and Taxes [including Wealth Tax Rs. 32.00 lakhs
(2011-2012 - Rs. 35.00 lakhs)] 427.01 431.31
Cess on Black Tea 409.92 395.55
Assam Green Leaf Cess 991.41 1116.10
Travelling 1227.61 1216.56
Legal and Professional Fees 726.11 669.25
Freight, Shipping and Selling Expenses 6643.83 5889.84
Brokerage on Sales 559.65 535.04
Selling Agents' Commission 417.49 458.06
Loss on Sale/Disposal of Investments 8.25 -
Less : Adjusted from Provisons (8.25) - - -
Bad Debts written off 2.28 -
Provision for Doubtful Debts 177.06 3.10
Provision for Doubtful Advances 11.54 -
Net Loss on Foreign Currency Transaction and Translation 404.77 916.35
Miscellaneous Expenses 3158.72 2824.62
41681.52 38483.95
28. OTHER EXPENSES
Year ended 31st March 2013 Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
68
Notes to Financial Statements (Contd.)
b) Superannuation (Funded)
Th e Company’s Superannuation scheme, a Defi ned Benefi t plan, is administered through trust funds and
covers certain categories of employees. Investments of the funds are managed by insurance companies /
trustees themselves. Benefi ts under these plans had been frozen in earlier years with regard to salary levels
then prevailing with the exception of a few employees. Upon retirement, death or cessation of employment,
Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure
periodic pension. Such superannuation benefi ts are based on respective employee’s tenure of employment
and salary.
c) Staff Pension – Type A (Funded)
Th e Company’s Staff Pension Scheme – Type A, a Defi ned Benefi t plan, is administered through a trust fund and
covers certain categories of employees. Investments of the fund are managed by Life Insurance Corporation
of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon
retirement, death or cessation of service based on the respective employee’s salary and tenure of employment
subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years
of service.
d) Staff Pension – Type B (Unfunded)
Th e Company’s Staff Pension Scheme – Type B, a Defi ned Benefi t plan, covers certain categories of employees.
Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement,
death or cessation of service based on the respective employee’s salary and tenure of employment subject to
a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.
e) Medical Insurance Premium Re-imbursement (Unfunded)
Th e Company has a scheme of re-imbursement of medical insurance premium to certain categories of
employees and their surviving spouses, upon retirement, subject to a monetary limit. Th e Company has
introduced a scheme of re-imbursement of medical expenses to a certain category of employees up to a
certain monetary limit. Th e scheme is in the nature of Defi ned Benefi t plan.
f) Expatriate Pension (Unfunded)
Th e Company has an informal practice of paying pension to certain categories of retired expatriate employees
and in certain cases to their surviving spouses. Th e scheme is in the nature of Defi ned Benefi t plan.
Th e following Tables sets forth the particulars in respect of aforesaid Defi ned Benefi t plans of the Company for
the year ended 31st March 2013 and corresponding fi gures for the previous year.
69
Notes to Financial Statements (Contd.)
Description
Gratuity Fund (Funded)2012-2013 2011-2012 Rs. Lakhs Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 10574.50 9579.29
Interest Cost 802.21 775.77
Current Service Cost 687.90 573.76
Past Service Cost - -
Benefi ts Paid 1093.67 905.26
Actuarial loss/(gain) on obligation 786.18 550.94
Present Value of obligation at the end of the year 11757.12 10574.50
Changes in the fair value of plan assets during the year ended 31st March
Fair Value of Plan Assets at the beginning of the year 10920.69 9773.53
Expected Return on Plan Assets 873.66 781.88
Contributions 1099.60 1323.42
Benefi ts Paid 1093.67 905.26
Actuarial gain/(loss) on Plan Assets 231.30 (52.88)
Fair Value of Plan Assets at the end of the year 12031.58 10920.69
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 11757.12 10574.50
Fair Value of Plan Assets at end of the year 12031.58 10920.69
Net Asset/(Liability) Recognised in Balance Sheet 274.46 346.19
Expense Recognised in Profi t and Loss Statement
Current Service Cost 687.90 573.76
Past Service Cost - -
Interest Cost 802.21 775.77
Expected Return on Plan Assets 873.66 781.88
Actuarial loss/(gain) recognised in the year 554.88 603.82
Expense Recognised in Profi t and Loss Statement @ 1171.33 @ 1171.47
@ included in Contribution to Provident and Other Funds (Note 25)
Category of Plan Assets
Investments in Bonds and Special Deposit 30.97 36.21
Investments with Life Insurance Corporation of India 1962.17 1797.08
Investments with other Insurance Companies 9952.47 9006.92
Others including Bank Balances 85.97 80.48
Total 12031.58 10920.69
Actual Return on Plan Assets 1104.96 729.00
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Infl ation Rate (%) 5.0 5.0
Return on Asset (%) 8.0 8.0
70
Notes to Financial Statements (Contd.)
Description
Superannuation Fund (Funded)2012-2013 2011-2012 Rs. Lakhs Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 1910.35 1879.33
Interest Cost 146.20 156.68
Current Service Cost - -
Benefi ts Paid 165.77 71.98
Actuarial loss/(gain) on obligation (41.02) (53.68)
Present Value of obligation at the end of the year 1849.76 1910.35
Changes in the fair value of plan assets during the year ended 31st March
Fair Value of Plan Assets at the beginning of the year 2297.83 2209.49
Expected Return on Plan Assets 183.83 176.76
Contributions - -
Benefi ts Paid 165.77 71.98
Actuarial gain/(loss) on Plan Assets 49.85 (16.44)
Fair Value of Plan Assets at the end of the year 2365.74 2297.83
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 1849.76 1910.35
Fair Value of Plan Assets at end of the year 2365.74 2297.83
Net Asset/(Liability) Recognised in Balance Sheet 515.98 387.48
Expense Recognised in Profi t and Loss Statement
Current Service Cost - -
Interest Cost 146.20 156.68
Expected Return on Plan Assets 183.83 176.76
Actuarial loss/(gain) recognised in the year (90.87) (37.24)
Expense Recognised in Profi t and Loss Statement @ (128.50) @ (57.32)
@ Included in Contribution to Provident and other Funds (Note 25)
Category of Plan Assets
Investments in Bonds and Special Deposit 47.80 64.24
Investments with Life Insurance Corporation of India 209.07 203.12
Investments with other Insurance Companies 2080.25 2004.24
Others including Bank Balances 28.62 26.23
Total 2365.74 2297.83
Actual Return on Plan Assets 233.68 160.32
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Return on Asset (%) 8.0 8.0
71
Notes to Financial Statements (Contd.)
DescriptionStaff Pension Fund Type A (Funded)
2012-2013 2011-2012 Rs. Lakhs Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 396.96 441.38
Interest Cost 31.74 36.58
Current Service Cost 51.60 39.38
Benefi ts Paid 0.31 21.95
Actuarial loss/(gain) on obligation (43.08) (98.43)
Present Value of obligation at the end of the year 436.91 396.96
Changes in the fair value of plan assets during the year ended 31st March
Fair Value of Plan Assets at the beginning of the year 90.76 105.24
Expected Return on Plan Assets 7.26 8.42
Contributions 0.31 0.23
Benefi ts Paid 0.31 21.95
Actuarial gain/(loss) on Plan Assets 0.14 (1.18)
Fair Value of Plan Assets at the end of the year 98.16 90.76
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 436.91 396.96
Fair Value of Plan Assets at end of the year 98.16 90.76
Net Asset/(Liability) Recognised in Balance Sheet (338.75) (306.20)
Expense Recognised in Profi t and Loss Statement
Current Service Cost 51.60 39.38
Interest Cost 31.74 36.58
Expected Return on Plan Assets 7.26 8.42
Actuarial loss/(gain) recognised in the year (43.22) (97.25)
Expense Recognised in Profi t and Loss Statement @ 32.86 @ (29.71)
@ Included in Contribution to Provident and Other Funds (Note 25)
Category of Plan Assets
Investments with Life Insurance Corporation of India 98.16 90.76
Total 98.16 90.76
Actual Return on Plan Assets 7.40 7.24
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Infl ation Rate (%) 5.0 5.0
Return on Asset (%) 8.0 8.0
72
Notes to Financial Statements (Contd.)
DescriptionStaff Pension Type B (Unfunded)
2012-2013 2011-2012 Rs. Lakhs Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March Present value of obligation at the beginning of the year 2803.16 2686.96
Interest Cost 218.71 222.49
Current Service Cost 267.75 182.63
Benefi ts Paid 138.65 138.83
Actuarial loss/(gain) on obligation (73.40) (150.09)
Present Value of obligation at the end of the year 3077.57 2803.16
Amount recognised in Balance SheetPresent Value of obligation at the end of the year 3077.57 2803.16
Fair Value of Plan Assets at the end of the year - -
Net Asset/(Liability) Recognised in Balance Sheet (3077.57) (2803.16)
Expense Recognised in Profi t and Loss StatementCurrent Service Cost 267.75 182.63
Interest Cost 218.71 222.49
Expected Return on Plan Assets - -
Actuarial loss/(gain) recognised in the year (73.40) (150.09)
Expense Recognised in Profi t and Loss Statement # 413.06 # 255.03
# included in Salaries and Wages (Note 25)
Principal Actuarial AssumptionsDiscount Rate (%) 8.0 8.5
Infl ation Rate (%) 5.0 5.0
DescriptionMedical Benefi t Liability (Unfunded)
2012-2013 2011-2012 Rs. Lakhs Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March Present value of obligation at the beginning of the year 326.50 282.73
Interest Cost 26.12 24.03
Current Service Cost - -
Benefi ts Paid 22.98 22.57
Actuarial loss/(gain) on obligation 90.01 42.31
Present Value of obligation at the end of the year 419.65 326.50
Amount recognised in Balance SheetPresent Value of obligation at the end of the year 419.65 326.50
Fair Value of Plan Assets at the end of the year - -
Net Asset/(Liability) Recognised in Balance Sheet (419.65) (326.50)
Expense Recognised in Profi t and Loss StatementCurrent Service Cost - -
Interest Cost 26.12 24.03
Expected Return on Plan Assets - -
Actuarial loss/(gain) recognised in the year 90.01 42.31
Expense Recognised in Profi t and Loss Statement * 116.13 * 66.34
* included in Insurance (Note 28)
Principal Actuarial AssumptionsDiscount Rate (%) 8.0 8.5
73
Notes to Financial Statements (Contd.)
DescriptionExpatriate Pension (Unfunded)
2012-2013 2011-2012 Rs. Lakhs Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 42.65 43.46
Interest Cost 1.81 2.36
Current Service Cost - -
Benefi ts Paid 39.98 31.49
Actuarial loss/(gain) on obligation 34.50 28.32
Present Value of obligation at the end of the year 38.98 42.65
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 38.98 42.65
Fair Value of Plan Assets at the end of the year - -
Net Asset/(Liability) Recognised in Balance Sheet (38.98) (42.65)
Expense Recognised in Profi t and Loss Statement
Current Service Cost - -
Interest Cost 1.81 2.36
Expected Return on Plan Assets - -
Actuarial loss/(gain) recognised in the year 34.50 28.32
Expense Recognised in Profi t and Loss Statement # 36.31 # 30.68
# included in Salaries and Wages (Note 25)
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Th e estimates of rate of infl ation in salary considered in actuarial valuation, take into account infl ation, seniority,
promotion and other relevant factors including supply and demand in the employment sphere.
Plan assets represent investment in various categories. Th e return on amounts invested with LIC is declared
annually by them. Return on amounts invested with Insurance companies, other than LIC, is mostly by way of Net
Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and
Special Deposit carry a fi xed rate of interest.
Th e expected return on plan assets is determined after taking into consideration composition of the plan assets
held, assessed risk of asset management and other relevant factors.
74
Notes to Financial Statements (Contd.)
Rs. Lakhs
Other Particulars 31st March2013 2012 2011 2010 2009
Gratuity Fund (Funded)
Defi ned Benefi t Obligation 11757.12 10574.50 9579.29 8508.40 6903.02
Plan Assets 12031.58 10920.69 9773.53 7100.68 4952.18
Surplus/(Defi cit) 274.46 346.19 194.24 (1407.72) (1950.84)
Experience Adjustments on Plan Liabilities 535.36 939.06 499.79 235.67 (1.77)
Experience Adjustments on Plan Assets 231.30 (52.88) 57.67 306.47 (51.77)
Superannuation Fund (Funded)
Defi ned Benefi t Obligation 1849.76 1910.35 1879.33 2018.52 2222.68
Plan Assets 2365.74 2297.83 2209.49 2233.99 2031.74
Surplus/(Defi cit) 515.98 387.48 330.16 215.47 (190.94)
Experience Adjustments on Plan Liabilities (63.34) (36.74) (23.17) (8.67) 67.79
Experience Adjustments on Plan Assets 49.84 (16.44) (20.80) 141.63 (88.31)
Staff Pension Fund Type A (Funded)
Defi ned Benefi t Obligation 436.91 396.96 441.38 407.45 373.73
Plan Assets 98.16 90.76 105.24 98.55 113.81
Surplus/(Defi cit) (338.75) (306.20) (336.14) (308.90) (259.92)
Experience Adjustments on Plan Liabilities (108.33) (30.19) 4.21 1.71 12.58
Experience Adjustments on Plan Assets 0.14 (1.18) 0.05 0.09 (58.99)
Staff Pension Fund Type B (Unfunded)
Defi ned Benefi t Obligation 3077.57 2803.16 2686.96 2537.87 2241.47
Plan Assets NA NA NA NA NA
Surplus/(Defi cit) NA NA NA NA NA
Experience Adjustments on Plan Liabilities (164.59) (69.00) 112.42 47.53 (88.07)
Experience Adjustments on Plan Assets NA NA NA NA NA
Medical Benefi t Liability (Unfunded)
Defi ned Benefi t Obligation 419.65 326.50 282.73 289.88 291.04
Plan Assets NA NA NA NA NA
Surplus/(Defi cit) NA NA NA NA NA
Experience Adjustments on Plan Liabilities 64.13 (14.55) (10.95) (4.51) (0.17)
Experience Adjustments on Plan Assets NA NA NA NA NA
Expatriate Pension (Unfunded)
Defi ned Benefi t Obligation 38.98 42.65 43.46 59.02 85.60
Plan Assets NA NA NA NA NA
Surplus/(Defi cit) NA NA NA NA NA
Experience Adjustments on Plan Liabilities 25.88 28.80 5.59 7.52 (10.30)
Experience Adjustments on Plan Assets NA NA NA NA NA
NA : Not Applicable
75
Notes to Financial Statements (Contd.)
g) Provident Fund: Contributions towards provident funds are recognised as expense for the year. Th e Company has set up Provident
Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees
and the Company make monthly contributions to the Funds at specifi ed percentage of the employee’s salary and
aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or
cessation of employment. Th e Trusts invest funds following a pattern of investments prescribed by the Government.
Th e interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the
Government under Th e Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on
account of interest is to be made good by the Company.
In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefi ts issued
by the Accounting Standard Board of Th e Institute of Chartered Accountants of India (ICAI), a provident fund set up
by the Company is defi ned benefi t plan in view of the Company’s obligation to meet shortfall, if any, on account of
interest.
Th e Actuary has carried out actuarial valuation of plan’s liabilities and interest rate guarantee obligations as at the
balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note
29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall
with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the
Company’s contribution of Rs. 284.90 lakhs (31st March 2012 – Rs. 237.07 lakhs) to the Provident Fund Trust has
been expensed under the “Contribution to Provident and Other Funds’. Disclosures given hereunder are restricted
to the information available as per the Actuary’s report.
31. Th ere are certain overdue loans and advances, interest accrued on loans and other recoverable items aggregating Rs.
4351.42 lakhs (31st March 2012 - Rs. 4351.42 lakhs). Th ese advances became overdue on account of the sluggish market
conditions and the resultant diffi culty in liquidating the assets by these parties. Th e management is actively continuing
to pursue options for recovery of these loans and advances. As a measure of prudence, and in the management’s best
judgement Rs. 4351.42 lakhs (31st March 2012 - Rs. 4351.42 lakhs) is being held in provision for contingency, for overdue
loans and advances etc. at the year end. (Refer Note 6).
32. Contingent Liabilities
a) Claims against the Company not acknowledged as debts : -
2012-2013 2011-2012
Principal Actuarial Assumptions
Discount Rate 8.50% 8.50%
Expected Return on Exempted Fund 8.90% 8.90%
Expected EPFO Return 8.50% 8.25%
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Sales Tax 52.14 26.37
Electricity Dues 29.27 29.27
Assam Pollution Control Board - 7.41
Provident Fund 68.43 68.43
Income Tax 150.10 247.65
Service Tax 70.13 75.48
Others - 0.86
76
Notes to Financial Statements (Contd.)
b) Guarantees given on behalf of a subsidiary - Rs. 12213.00 lakhs (31st March 2012 - Rs. 11445.75 lakhs); Year end
utilisation Rs. 4094.58 lakhs (31st March 2012 – Rs. 7089.93 lakhs).
c) Bank Guarantees Rs. 117.58 lakhs (31st March 2012 - Rs. 102.94 lakhs)
d) Bills Discounted – Rs. 9490.76 lakhs (31st March 2012– Rs. 1014.45 lakhs)
33. TAXATION
Current Tax charge for the year has been reckoned after taking into account, benefi t under Section 33AB of the Income
Tax Act, 1961 (which are available on timely deposit of required amount with development bank).
34. COMMITTMENTS
Estimated Capital Commitment on account of contracts remaining to be executed and not provided for at the year-end
is Rs. 1431.11 lakhs (31st March 2012 - Rs. 3230.22 lakhs). Such commitment, net of advances, is Rs. 731.97 lakhs (31st
March 2012 - Rs. 1515.42 lakhs).
35. BUSINESS SEGMENT
Th e Company is primarily engaged in the business of cultivation, manufacture and sale of tea and is managed
organisationally as a single unit. Accordingly, the Company is a single business segment company.
Geographical (Secondary) Segments
Th e geographical segments have been identifi ed as follows :
a) Sales revenue of Tea by geographical market:
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. Lakhs - India 85769.05 80155.08
- Outside India 47938.10 40134.41
133707.15 120289.49
b) Assets by geographical market:
As at31st March 2013
As at31st March 2012
Rs. Lakhs Rs. Lakhs - India 182750.49 174134.92
- Outside India 23.15 22.18
182773.64 174157.10
c) Purchase of fi xed assets by geographical market :
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. Lakhs - India 8630.68 10648.23
- Outside India - -
8630.68 10648.23
77
Notes to Financial Statements (Contd.)
36. Information given in accordance with the requirement of Accounting Standard 18 on Related Party Disclosures prescribed
under the Act : -
a) List of Related Parties Where control exists:
- Subsidiaries :
Borelli Tea Holdings Limited (BTHL)
Phu Ben Tea Company Limited (PBTCL)
Rwenzori Tea Investments Limited (RTI)
McLeod Russel Uganda Limited (MRUL)
Olyana Holdings LLC (Olyana) (upto 25th June 2012)
Gisovu Tea Company Limited (GTCL)
McLeod Russel Middle East (MRME)
Others:
- Associates :
D1 Williamson Magor Bio Fuel Limited (D1)
- Key Management Personnel
Managing Director Mr. Aditya Khaitan (AK)
Wholetime Directors Mr. R. Takru (RT)
Mr. A. Monem (AM)
Mr. K. K. Baheti (KKB)
- Relatives of Key Management Personnel with whom transactions took place during the year.
Mr. B. M. Khaitan (BMK) Father of Mr. A. Khaitan
Mr. D. Khaitan (DK) Brother of Mr. A. Khaitan
b) Transactions / Balances with Subsidiary
Name of Subsidiary Nature of Transactions/Balances
As at/ Year ended31st March 2013
As at/ Year ended31st March 2012
Rs. Lakhs Rs. LakhsBTHL Loan outstanding at beginning of the year 1500.00 2900.00
Loan given 2600.00 1000.00
Refund received 1500.00 2400.00
Loan outstanding at year end 2600.00 1500.00
Interest income 299.21 242.11
Interest income receivable 299.21 242.11
Royalty 483.84 398.29
Royalty payable (Gross) 120.67 398.29
Dividend Paid 1624.05 1353.38
Dividend Received 639.66 263.19
Balance of Investment at the year end 22936.98 22936.98
MRUL Consultancy Fees 99.08 85.71
Trade Receivable 48.99 19.45
PBTCL Consultancy Fees 27.60 25.44
Trade Receivable - 25.44
MRME Sale of Tea 256.15 162.26
78
Notes to Financial Statements (Contd.)
c) Transactions / Balances with Associate
Name of Associate Nature of Transactions/Balances
As at/ Year ended31st March 2013
As at/ Year ended31st March 2012
Rs. Lakhs Rs. Lakhs D1 Subscription in Share Capital during the year - 72.93
Balance of Investments at the year-end 484.35 684.35
d) Transactions / Balances with Key Management Personnel Remuneration Dividend paid Loan Outstanding as at
2012-13 2011-12 2012-13 2011-12 31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
AK 278.58 248.50 0.43 0.36 - -
RT 138.48 122.80 0.03 0.04 4.33 6.73
AM 138.73 122.42 - - - 0.13
KKB 137.69 122.06 0.31 0.01 - -
Total 693.48 615.78 0.77 0.41 4.33 6.86
e) Transactions / Balances with relatives of Key Management Personnel As at/Year ended
31st March 2013As at/Year ended
31st March 2012 Rs. Lakhs Rs. Lakhs
Directors’ Sitting Fees
BMK 0.60 0.80
DK 0.20 0.60
Commission
BMK 2.50 2.50
DK 2.50 2.50
Dividend Paid
BMK 2.18 1.81
DK 0.71 0.59
Amount outstanding at year end
BMK 2.50 2.50
DK 2.50 2.50
37. Disclosure pursuant to SEBI’s Circular No. SMD/POLICY/CIR-02/2003
As at31st March 2013
As at31st March 2012
Rs. Lakhs Rs. Lakhsi) Loans and Advances in the Nature of Loans to Subsidiaries and Associates
a) Loan to Subsidiary
Borelli Tea Holdings Limited
- Balance at the year end 2600.00 1500.00
- Maximum amount outstanding at any time during the year 4100.00 3900.00
b) Loan to Associate
Babcock Borsig Limited
- Balance at the year end - -
- Maximum amount outstanding at any time during the year - 5675.00*
* Ceased as associate with eff ect from 28th March 2012
ii) Loans and Advances in the Nature of Loans to Firms/Companies in which
Directors are Interested
a) Loan to a Company in which a Director of a Company is a Director
United Machines Company Limited
- Balance at the year end 360.00 360.00
- Maximum amount outstanding at any time during the year 360.00 360.00
79
Notes to Financial Statements (Contd.)
38. During the year 2012-13, a tea-manufacturing factory has been taken on non-cancellable operating lease for period
from 1st January 2013 to 31st December 2017. Th e Lease Rent charged in Profi t & Loss Statement and future lease
commitments are:
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsLease Rent 18.75 -
Future lease commitment
Not later than one year 75.00 -
Later than one year and not later than fi ve years 281.25 -
Later than fi ve years - -
39. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs.5278 lakhs during the year 2009-10 on the Company on account of alleged non-deduction of tax at source and
interest thereon pertaining to the transaction. Th e Company has challenged the said demand before the appropriate
authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the
Hon’ble High Court of Calcutta. Th e Company has deposited Rs. 700.00 lakhs during the year 2011-12 with Income Tax
Authority under protest (Refer Note 19). In any event, as per the related Share Purchase Agreement, Capital Gain tax or
other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.
41. Revenue Expenditure on Research and Development Rs. 110.43 lakhs (31st March 2012 - Rs. 113.89 lakhs) represent
subscription to Tea Research Association.
42. Th ere are no outstanding dues of Micro and Small Enterprises (MSEs) based on information available with the Company.
40. EARNINGS PER EQUITY SHARE :
Year ended31st March 2013
Year ended31st March 2012
a] Numerator used:
Profi t after Taxation ( Rs. Lakhs) 22570.00 22027.54
b] Denominator used
Weighted Average Number of Equity Shares 10,94,55,735 10,94,55,735
c] Face Value of Equity Shares - Rs. 5 5
d] Dilutive Potential Equity Shares - -
e] Earnings per Share [Basic and Diluted] - Rs. 20.62 20.12
43. AUDITORS’ REMUNERATION : (Included in Miscellaneous Expenses under Note 28)
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsAs Auditors - Audit Fees 35.00 35.00
For Other Services
Tax Audit Fees 15.00 12.50
Certifi cation etc. 42.90 39.50
For Reimbursement of expenses
Out of Pocket Expenses 0.88 0.94
Service Tax 11.59 10.22
80
Notes to Financial Statements (Contd.)
44. VALUE OF IMPORTS CALCULATED ON CIF BASIS
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsComponents and Spare Parts (including Packing Materials) 529.91 284.98
Capital Goods 44.28 331.89
45. Consumption of Stores (including Packing Material), Spare Parts and Components
[including Rs. 2712.46 lakhs (31st March 2012 – Rs. 2532.97 lakhs) debited to other accounts]
Year ended 31st March 2013 Year ended 31st March 2012 Rs. Lakhs % Rs. Lakhs %
Imported 347.41 3.91 265.39 3.07
Indigenous 8547.82 96.09 8380.75 96.93
8895.23 100.00 8646.14 100.00
46. Salaries and Wages excludes Rs. 782.67 lakhs (31st March 2012 - Rs. 1080.81 lakhs) and Stores and Spares consumed
excludes Rs. 2712.46 lakhs (31st March 2012 - Rs. 2532.97 lakhs) debited to other accounts.
47. EXPENDITURE IN FOREIGN CURRENCY
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsConsultancy (Net of Tax) 43.37 35.29
Pension 39.22 30.55
Travel 117.00 186.86
Selling Agents’ Commission, Brokerage etc. 49.54 16.30
Ocean Freight 6.94 37.19
Royalty (Net of Tax) 435.88 338.55
Others 66.57 4.86
48. AMOUNT REMITTED IN FOREIGN CURRENCY ON ACCOUNT OF :
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsDividend 1638.33 1365.31
Year to which the dividend relatesYear ended
31st March 2012Year ended
31st March 2011Number of Non-Resident Shareholders 53 56
Number of Shares held by Non-Resident Shareholders 27305573 27306109
49. PROPOSED DIVIDEND
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsTh e dividend proposed for the year is as follows:
On Equity Share of Rs. 5/- each
Amount of Dividend Proposed 7661.90 6567.11
Dividend per Equity Shares Rs. 7/- Rs. 6/-
50. EARNING IN FOREIGN EXCHANGE
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsExport of Goods calculated on FOB Basis 47367.76 39646.93
Interest Income 299.21 242.11
Consultancy Income 126.68 111.15
Dividend Received 639.66 263.19
81
Notes to Financial Statements (Contd.)
51. Items of Expenditure in the Profi t and Loss Statement include reimbursements to and by the Company.
52. Derivative Investments and Unhedged Foreign Currency Exposure
a) Derivatives outstanding as at the reporting date:-Particulars Purpose Currency As at 31st March, 2013 As at 31st March, 2012
Amount in Foreign Currency
Amount in Rs. Lakhs
Amount in Foreign Currency
Amount in Rs. Lakhs
Forward contracts on past
performance
Hedging of foreign
currency receivables
USD 28000000 15201.20 22000000 11193.60
GBP 2000000 1085.80 6000000 4897.20
Currency and Interest Rate
Swap
Hedging of fl oating
interest rate USD 7439062 4038.67 9149410 4655.22
b) Particulars of unhedged foreign currency exposures as at the reporting date.Trade/ Other Payable GBP 146302 120.67 487981 398.29
Trade/ Other Receivables USD 423473 229.87 88227 44.89
2012-13 2011-12Rs. Lakhs Rs. Lakhs
c) Mark to Market Losses Provided for 802.67 675.22
53. EXCEPTIONAL ITEM COMPRISES
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. LakhsProvision in carrying amount of long term
Investments in :
An associate 200.00 1500.00
A Body Corporate 33.44 -
Loss/(Profi t) on disposal of Investment in :
An associate - (118.03)
233.44 1381.97
54. Previous year fi gures have been reclassifi ed to conform to this year’s classifi cation.
Signatures to Notes 1 to 54
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
82
independent auditors’ report
To the Board of Directors of McLeod Russel India Limited
1. We have audited the accompanying consolidated fi nancial statements (the “Consolidated Financial Statements”) of
McLeod Russel India Limited (“the Company”) and its subsidiaries and associate company; hereinafter referred to as the
“Group” (refer Note 29 to the attached consolidated fi nancial statements) which comprise the consolidated Balance
Sheet as at March 31, 2013, and the consolidated Profi t and Loss Statement and the consolidated Cash Flow Statement
for the year then ended, and a summary of signifi cant accounting policies and other explanatory information which we
have signed under reference to this report.
Management’s Responsibility for the Consolidated Financial Statements
2. Th e Company’s Management is responsible for the preparation of these consolidated fi nancial statements that give a
true and fair view of the consolidated fi nancial position, consolidated fi nancial performance and consolidated cash fl ows
of the Group in accordance with accounting principles generally accepted in India. Th is responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated
fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these consolidated fi nancial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Th ose
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated fi nancial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
fi nancial statements. Th e procedures selected depend on the auditors’ judgement, including the assessment of the
risks of material misstatement of the consolidated fi nancial statements, whether due to fraud or error. In making those
risk assessments, the auditors consider internal control relevant to the Company’s preparation and fair presentation of
the consolidated fi nancial statements in order to design audit procedures that are appropriate in the circumstances. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall presentation of the consolidated fi nancial statements.
5. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.
Opinion
6. We report that the consolidated fi nancial statements have been prepared by the Company’s Management in accordance
with the requirements of Accounting Standard (AS) 21 – Consolidated Financial Statements and Accounting Standard
(AS) 23 – Accounting for Investments in Associates in Consolidated Financial Statements notifi ed under Section 211(3C)
of the Companies Act, 1956.
83
independent auditors’ report
To the Board of Directors of McLeod Russel India Limited
Report on the Consolidated Financial Statements
7. Based on our audit and on consideration of reports of other auditors on separate fi nancial statements and on the other
fi nancial information of the components of the Group as referred to in paragraph 8 below, and to the best of our information
and according to the explanations given to us, in our opinion, the accompanying consolidated fi nancial statements give a
true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the consolidated Balance Sheet, of the state of aff airs of the Group as at March 31, 2013;
(b) in the case of the consolidated Profi t and Loss Statement, of the profi t for the year ended on that date; and
(c) in the case of the consolidated Cash Flow Statement, of the cash fl ows for the year ended on that date.
Other Matter
8. We did not audit the fi nancial statements of (i) one subsidiary included in the consolidated fi nancial statements, which
constitute total assets of Rs. 36,759.24 lakhs and net assets of Rs. 25,988.24 lakhs as at March 31, 2013, total revenue
of Rs. 29,386.69 lakhs, net profi t of Rs. 5,942.62 lakhs and net cash fl ows amounting to Rs. 1,244.80 lakhs for the year
then ended; and (ii) one associate company which constitute net loss of Rs. 202.51 lakhs for the year then ended. Th ese
fi nancial statements and other fi nancial information have been audited by other auditors whose reports have been
furnished to us, and our opinion on the consolidated fi nancial statements to the extent they have been derived from such
fi nancial statements is based solely on the report of such other auditors.
For Price Waterhouse Firm Registration Number: 301112E
Chartered Accountants
Prabal Kr. SarkarKolkata Partner
27th May, 2013 Membership Number: 52340
84
consolidated Balance Sheet As At 31St March, 2013
Note 31st March 2013 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. LakhsEQUITY AND LIABILITIES
Shareholders' FundsShare Capital 2 5472.79 5472.79
Reserves and Surplus 3 189620.12 195092.91 169192.38 174665.17
Minority Interest 1531.55 1173.91
Non-current LiabilitiesLong - term Borrowings 4 2582.74 9397.07
Deferred Tax Liabilities (Net) 5 8233.48 7692.09
Long - term Provisions 6 7255.13 18071.35 7188.24 24277.40
Current LiabilitiesShort-term Borrowings 7 14276.39 10401.23
Trade Payables 8 7638.82 7310.47
Other Current Liabilities 9 16833.69 16200.21
Short-term Provisions 10 14257.95 53006.85 12093.68 46005.59
TOTAL 267702.66 246122.07 ASSETS
Non-Current AssetsFixed Assets
Tangible Assets 11 167699.38 161573.95
Intangible Assets 12 25115.49 24421.30
Capital Work-in-Progress 3987.18 3138.96
Intangible Assets under Development - 196802.05 399.34 189533.55
Non-Current Investments 13 1665.37 1896.77
Long - term Loans and Advances 14 20007.65 15162.43
Other Non-current Assets 15 3779.49 25452.51 3781.74 20840.94
Current AssetsInventories 16 17083.21 12478.70
Trade Receivables 17 4057.54 2965.89
Cash and Bank Balances 18 4634.58 3341.30
Short-term Loans and Advances 19 15146.74 12752.75
Other Current Assets 20 4526.03 45448.10 4208.94 35747.58
TOTAL 267702.66 246122.07
Th is is the Consolidated Balance Sheet
referred to in our report of even date Th e notes are an integral part of these Financial Statements
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
85
consolidated PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
Th is is the Consolidated Profi t and Loss Statement
referred to in our report of even date Th e notes are an integral part of these Financial Statements
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
Note Year ended 31st March 2013
Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs
Revenue from Operations 21 166855.14 144531.69
Other Income 22 3442.32 4106.92
Total Revenue 170297.46 148638.61
Expenses:
Cost of Materials Consumed 23 23795.19 15139.82
Purchase of Tea 1790.41 192.04
Changes in Inventories of Finished Goods 24 (792.93) (727.34)
Employee Benefi ts Expense 25 52618.76 45886.78
Finance Costs 26 5104.94 5674.42
Depreciation and Amortisation Expense 27 3919.74 3696.63
Other Expenses 28 51321.95 45101.94
Total Expenses 137758.06 114964.29
Profi t before Exceptional Items and Tax 32539.40 33674.32
Exceptional Item 45 30.93 868.19
Profi t before Taxation, Share of Earnings/(Loss) from Associates and Minority Interest 32508.47 32806.13
Tax expense:
Current Tax 6189.25 6672.63
Less: MAT Credit (1779.88) (1022.19)
Provision/ (Write back) relating to earlier years (612.72) (2363.27)
Deferred Tax 500.52 93.27
Profi t after Taxation but before Share of Earnings/(Loss) from Associates and Minority Interest 28211.30 29425.69
Share of Associates' Earnings/ (Loss) Net (202.51) (331.50)
Minority Interest (615.76) (302.10)
Profi t for the Year 27393.03 28792.09
Earnings per Equity Share:
[Nominal Value per share : Rs. 5/- (Previous Year : Rs. 5/-)] 39
- Basic 25.03 26.30
- Diluted 25.03 26.30
86
consolidated CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
2012-13 2011-12
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. LakhsA. CASH FLOW FROM OPERATING ACTIVITIES
Net Profi t before taxation, Share of Earnings/(Loss) from
Associates and Minority Interest 32508.47 32806.13
Adjustments for :
Provision for Doubtful Debts 177.06 3.10
Provision for Diminution in Long-term Investments 30.93 660.77
Provision for Doubtful Advances 11.73 -
Liabilities no longer required written back (297.76) (367.22)
Bad Debts written off 2.28 -
Reversal of Impairment Loss (350.00) -
Depreciation on Tangible Assets 3939.43 3402.19
Amortisation on Intangible Assets 330.31 294.44
Profi t on Disposal of Fixed Assets (Net) (380.91) (182.58)
Loss on Disposal of Long Term Trade Investments - 207.42
Interest Subsidy - (567.81)
Dividend on Long Term Trade Investments (35.78) (94.09)
Interest Income (2089.72) (2362.02)
Interest Expense 4964.15 5411.96
Unrealised Foreign Exchange Losses / (Gains) 164.94 549.46
Exchange diff erence on translation of foreign currency (153.19) (1050.51)
Operating Profi t before Working Capital changes 38821.94 38711.24
Changes in Working Capital
Increase / (Decrease) in Trade Payables 626.11 (1692.25)
Increase / (Decrease) in Other Current Liabilities (943.51) 4392.29
Increase / (Decrease) in Provision 183.05 29.74
(Increase) / Decrease in Trade Receivables (1270.99) (907.17)
(Increase) / Decrease in Inventories (4604.51) (2801.92)
(Increase) / Decrease in Loans and Advances and Fixed
Deposits (5513.53) (4655.16)
(Increase) / Decrease in Other Current Assets (140.22) (990.44)
(Increase) / Decrease in Other Non Current Assets 2.25 (11661.35) 4.11 (6620.80)
Cash Generated from operations 27160.59 32090.44
Taxes paid (Net of Refunds) (6322.37) (5734.06)
Net Cash from Operating Activities 20838.22 26356.38 B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (9993.72) (14446.34)
Purchase of Long-term Investments - (72.92)
Disposal of Fixed Assets 581.37 581.24
Capital Subsidy Received 232.28 -
Loans Recovered /(given) 204.71 1811.07
Redemption / Sale of Long Term Trade Investments 1.26 337.72
Interest Subsidy Received - -
Interest Received 1912.85 2018.21
Dividend Received 35.78 94.09
Net Cash used for Investing Activities (7025.47) (9676.93)
87
consolidated CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
2012-13 2011-12
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. LakhsC. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Short-term Borrowings 3875.16 3487.78
Repayment of Long-term Borrowings (5446.21) (9380.76)
Interest paid (5107.25) (5406.96)
Dividend paid / Transferred to Investor Education and
Protection Fund (4978.79) (3799.71)
Dividend Tax paid (862.46) (466.74)
Net Cash used for Financing Activities (12519.55) (15566.39)D. EFFECT OF FOREIGN EXCHANGE DIFFERENCE ON
Cash and Cash Equivalents 0.08 0.78
Net Increase in Cash and Cash Equivalents (A+B+C+D) 1293.28 1113.84
Cash and Cash Equivalents at the beginning of the year
(Refer Note 18) 3341.30 2227.46
Cash and Cash Equivalents at the end of the year (Refer
Note 18) * 4634.58 3341.30
Changes in Cash and Cash Equivalents - Increase/ (Decrease) 1293.28 1113.84 * Includes the following balances which are available for use
for specifi c purposes.
Unpaid Dividend Account 241.95 171.24
Escrow Accounts/Fractional Share sale Proceeds Account 0.61 0.61
(a) Th e above Consolidated Cash Flow Statement has been prepared under the indirect method as set out in the
Accounting Standard 3 on Cash Flow Statement prescribed under the Companies Act, 1956.
(b) Also refer Note 48 to the Consolidated Financial Statements.
(c) Notes referred to above form an integral part of the Consolidated Cash Flow Statement.
Th is is the Consolidated Cash Flow Statement
referred to in our report of even date
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
88
Notes to consolidated Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of Preparation Th ese fi nancial statements have been prepared in accordance with the generally accepted accounting principles in India
under the historical cost convention on accrual and prudent basis, except for certain tangible assets which are being
carried at revalued amounts.
Th ese fi nancial statements have been prepared to comply, in all material aspects, with the applicable accounting
standards notifi ed under Section 211 (3C) of the Companies Act, 1956.
All assets and liabilities have been classifi ed as current or non-current as per the Group’s normal operating cycle and
other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the
time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group
has ascertained its operating cycle as 12 months for the purpose of classifi cation of current – non current assets and
liabilities.
1.2 Tangible Assets Tangible Assets are stated at acquisition cost or valuation net of accumulated depreciation and accumulated impairment
losses, if any. Cost of extension planting is capitalised. An impairment loss is recognised wherever the carrying amount of
the tangible assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher. Assessment
is also done at each balance sheet date as to whether there is any indication that an impairment loss recognised for an
asset in prior accounting periods may no longer exist or may have decreased.
1.3 Intangible Assets Intangible assets are stated at acquisition cost net of accumulated amortisation and accumulated impairment losses, if
any. An impairment loss is recognised whenever the carrying amount of the intangible assets of a cash generating unit
exceeds its net selling price or value in use, whichever is higher. Assessment is also done at each balance sheet date as to
whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer
exist or may have decreased.
1.4 Depreciation and Amortisation Depreciation on straight line method is provided on book value of Tangible Fixed Assets (other than Estate and
Development and Freehold Land) in the manner and at rates as per Schedule XIV to the Companies Act, 1956 of India
(the Act). Items of fi xed assets for which related actual cost do not exceed Rs.5,000 are fully depreciated in the year of
purchase.
Tangible fi xed assets of certain subsidiary companies are depreciated using the straight-line method over the following
estimated useful lives:
Intangible fi xed assets are amortised on straight line method over their estimated economic lives as set out in Note 12.
Additional charge of depreciation on amount added on revaluation is adjusted against Revaluation Reserve, wherever
available.
1.5 Investments Long Term Investments are stated at cost. Provision is made for diminution, other than temporary. Gains/losses on
disposal of investments are recognised as income / expenditure.
Years
Buildings 20–40, 5-50
Plant and Equipment 12, 5-20
Estate and Development 33.33
Furniture and Fixtures 5-8, 3-5, 2-4
Vehicles 5–10, 4
Computer 4
Offi ce Equipment 5-8
89
Notes to consolidated Financial Statements (Contd.)
1.6 Inventories Inventories are valued as under :
- Stores and Spare Parts : At lower of cost (determined under weighted average method) and net realisable value.
- Finished Goods : At lower of cost (including attributable charges and levies) and net realisable value.
- In case of certain subsidiary companies, Inventories are valued at lower of cost and net realisable value, cost
being determined under FIFO method.
1.7 Revenue Recognition Sale of products is recognised on completion of sale of goods. Sale includes tea claim and is net of sales return, sales tax
etc. Other items are recognised on accrual basis.
1.8 Employee Benefi ts a. Short Term Employee Benefi ts: Th ese are recognised at the undiscounted amount as expense for the year in which the related service is rendered
b. Post Employment Benefi t Plans: Contributions under Defi ned Contribution Plans payable in keeping with the related schemes are recognised as
expenditure for the year.
In case of Defi ned Benefi t Plans, the cost of providing the benefi t is determined using the Projected Unit Credit
Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses are
recognised in full in the Profi t and Loss Statement for the period in which they occur. Past service cost is recognised
immediately to the extent that the benefi ts are already vested, and otherwise is amortised on a straight-line basis
over the average period until the benefi ts become vested. Th e retirement benefi t obligation recognised in the
Balance Sheet represents the present value of the defi ned benefi t obligation as adjusted for unrecognised past
service cost, if any, and as reduced by the fair value of plan assets, where funded. Any asset resulting from this
calculation is limited to the present value of any economic benefi t available in the form of refunds from the plan or
reductions in future contributions to the plan.
c. Other Long Term Employee Benefi ts (Unfunded): Th e cost of providing long-term employee benefi ts is determined using Projected Unit Credit Method with actuarial
valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are
recognised immediately in the Profi t and Loss Statement for the period in which they occur. Long term employee
benefi t obligation recognised in the Balance Sheet represents the present value of related obligation.
In case of a subsidiary company, Post Employment Defi ned Benefi t Plan is accounted for on the full liability method.
1.9 Borrowing Cost Interest and other costs in connection with the borrowing of funds by the Group are recognised as an expense in the
period in which they are incurred unless these are attributable to the acquisition and construction of qualifying assets and
added to the cost up to the date when such assets are ready for their intended use.
1.10 Research and Development Revenue expenditure on Research and Development is recognised as a charge to the Profi t and Loss Statement. Capital
expenditure on assets acquired for Research and Development is added to Fixed Assets.
1.11 Accounting for Taxes on Income Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profi t or
loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with
the taxation laws prevailing in the respective jurisdiction.
Deferred tax is recognised for all the timing diff erences, subject to the consideration of prudence in respect of deferred
tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty
that suffi cient future taxable income will be available against which such deferred tax assets can be realised.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date. At each Balance Sheet date, the Group re-assesses unrecognised deferred tax
assets, if any.
90
Notes to consolidated Financial Statements (Contd.)
Current tax assets and current tax liabilities are off set when there is a legally enforceable right to set off the recognised
amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax
liabilities are off set when there is a legally enforceable right to set off assets against liabilities representing current tax
and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing
taxation laws.
Minimum Alternative Tax credit is recognised as an asset only when and to the extent there is convincing evidence that
the Parent Company will pay normal income tax during the specifi ed period. Such asset is reviewed at each Balance
Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing
evidence to the eff ect that the Parent Company will pay normal income tax during the specifi ed period.
1.12 Transactions in Foreign Currencies Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction. Monetary
items denominated in foreign currency are restated at the exchange rate prevailing on the Balance Sheet date. Foreign
currency non-monetary items carried in terms of historical cost are reported using the exchange rate at the date of the
transactions. Exchange diff erences arising on settlement of transactions and/or restatements are dealt with in the Profi t
and Loss Statement.
1.13 Derivative Instruments Derivative fi nancial instruments such as forward exchange contracts, currency swaps etc. are used to hedge its risks
associated with foreign currency fl uctuations relating to the underlying transactions, highly probable forecast transactions
and fi rm commitments. In respect of Forward Exchange Contracts with underlying transactions, the premium or discount
arising at the inception of such contract is amortised as expense or income over the life of contract.
Other Derivative contracts outstanding at the Balance Sheet date are marked to market and resulting loss, if any,
is provided for in the fi nancial statements. Any profi t or losses arising on cancellation of derivative instruments are
recognised as income or expenses for the period.
In case of a subsidiary company Derivative Contracts outstanding at the balance sheet date are marked to market and
resulting profi ts are also recognised in the fi nancial statements.
1.14 Government Grants Government grants related to specifi c fi xed assets are deducted from gross values of related assets in arriving at their
book value.
Government grants related to revenue are recognised in the Profi t and Loss Statement.
1.15 Consolidation Consolidated fi nancial statements relate to McLeod Russel India Limited, the Parent Company and its subsidiary
companies (the Group). Th e consolidated fi nancial statements are in conformity with the Accounting Standard (AS) – 21
on Consolidated Financial Statements prescribed under the Act and are prepared as set out below:
(a) Th e fi nancial statements of the Parent Company and its subsidiary companies are combined on a line-by-line basis
by adding together the book values of like items of assets, liabilities, income and expenses, after adjustments/
elimination of inter-company balances, transactions including unrealised profi t etc.
(b) Th e consolidated fi nancial statements are prepared by adopting uniform accounting policies for like transactions
and other events in similar circumstances in all material respects and are presented to the extent practicable and
possible, in the same manner as the Parent Company’s separate fi nancial statements.
(c) Th e excess of cost to the Parent Company of its investment in the subsidiary companies over the Parent’s portion
of equity of the subsidiary companies at the date those became subsidiary companies is recognised in the fi nancial
statements as goodwill which is not amortised.
(d) Th e translation of the functional currencies into Indian Rupees (reporting currency) is performed for equity in
the foreign subsidiaries, assets and liabilities using the closing exchange rate at the Balance Sheet date, and for
revenues, costs and expenses using average exchange rates prevailing during the period. Th e resultant exchange
diff erence arising out of such transactions is recognised as part of equity (Foreign Currency Translation Adjustment
Account) by the Parent Company until the disposal of investment.
(e) Investment in Associate Companies is accounted for in accordance with AS-23 on ‘Accounting for Investments in
Associates in Consolidated Financial Statements’ prescribed under the Act, under equity method.
91
Notes to consolidated Financial Statements (Contd.)
2. SHARE CAPITAL
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Authorised
12,00,00,000 (31.03.2012 - 12,00,00,000) Equity Shares of Rs. 5/- each 6000.00 6000.00
Issued, subscribed and paid-up10,94,55,735 (31.03.2012 -10,94,55,735) Equity Shares of Rs. 5/- each fully paid up 5472.79 5472.79
5472.79 5472.79
(a) Aggregate number of Equity Shares allotted as fully paid up pursuant to Scheme
of Arrangement / Schemes of Amalgamation without payment being received in
cash (during fi ve years immediately preceding the Balance Sheet date) 1118028 1118028
3. RESERVES AND SURPLUS Rs. Lakhs
General
Reserve
[Refer
Note (a)
below]
Securities
Premium
Account
Capital
Reserve
Revaluation
Reserve
Other
Reserve
[Refer
Note (b)
below]
Foreign
Currency
Translation
Adjustment
Account
Surplus in
Profi t and
Loss
Statement
Total
Balance at the beginning of the year 64000.00 11053.58 201.68 56022.54 19209.20 (3203.19) 21908.57 169192.38
Add : Profi t for the year - - - - - - 27393.03 27393.03
Less : Transferred to General Reserve - - - - - - 11000.00 11000.00
Less : Transferred to Capital Reserve - - - - - - 215.34 215.34
Add : Transferred from Surplus in Profi t
and Loss Statement 11000.00 - 215.34 - - - - 11215.34
Less : Adjustment on account of disposal
of Revalued Assets - - - 12.57 - - - 12.57
Less : Withdrawn on account of
depreciation on amount added on
Revaluation of Fixed Assets (Refer
Note 27) - - - 363.75 - - - 363.75
Add : Adjustment on account of Write
back of Impairment Provison (Refer
Note 11) - - - 200.00 - - - 200.00
Add : Amount adjusted during the year - - (57.67) - - 247.05 - 189.38
Add : Adjustment on account of Dividend
(Refer Note 41)
- - - - - - 1624.05 1624.05
Add : Adjustment on account of Olyana - - - - - - 361.64 361.64
Less : Proposed Dividend by the Parent
Company - - - - - - 7661.90 7661.90
Less : Tax on Proposed Dividend by the
Parent Company - - - - - - 1302.14 1302.14
Balance at the end of the year 75000.00 11053.58 359.35 55846.22 19209.20 (2956.14) 31107.91 189620.12 a) Represents a free reserve not meant for any specifi c purpose.
b) Represents the balance amount of reserve which had arisen on transfer of Bulk Tea Division of Eveready Industries India Limited.
4. LONG-TERM BORROWINGS
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
SECUREDTerm Loans from BankICICI Bank Limited 1750.00 4100.00
Standard Chartered Bank 832.74 1244.69
ICICI Bank UK Plc - 4052.38
2582.74 9397.07
92
Notes to consolidated Financial Statements (Contd.)
5. DEFERRED TAX LIABILITIES (NET)
31st March 2013 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
A. Deferred Tax Liability
i) Diff erence between net book value of depreciable
capital assets as per books vis-à-vis written down
value as per tax laws 9543.74 8864.72
B. Deferred Tax Assets
i) Voluntary Retirement Compensation - 0.08
ii) Items allowed for tax pupose on payment 644.44 548.45
iii) Provision for Doubtful Debts, Advances etc. 665.82 1310.26 624.10 1172.63
Net Deferred Tax Liabilities (A-B) [Refer (c) below] 8233.48 7692.09
(c) Includes Rs. 40.87 lakhs (31.03.2012 - Net of Rs. 372.12
lakhs) on account of foreign exchange adjustment.
6. LONG-TERM PROVISIONS
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Provision for Employee Benefi ts 2903.71 2836.82
Provision for Contingencies (Refer Note 32 below) 4351.42 4351.42
7255.13 7188.24
7. SHORT-TERM BORROWINGS
Secured Loans repayable on demand from BanksCash Credit, Packing Credit and Demand Loans 14276.39 10401.23
14276.39 10401.23
8. TRADE PAYABLES
Trade payables 7638.82 7310.47
7638.82 7310.47
9. OTHER CURRENT LIABILITIES
Current maturities of long-term debts 8007.95 6512.38
Interest accrued but not due on borrowings 86.29 229.39
Advances from Customers / Selling Agents 1527.56 1077.54
Unpaid Dividends [Refer (a) below] 241.95 171.24
Unclaimed Fractional Share Sale Proceeds 0.61 0.61
Deposits Received from Agents 156.50 182.33
Employee Benefi ts Payable 5434.96 4806.52
Remuneration payable to Non -Whole time Directors 18.00 18.86
Statutory dues (including Provident Fund and Tax deducted at Source) 1152.64 3147.92
Capital Liabilities 207.23 53.42
16833.69 16200.21
(a) Th ere are no amounts due for payment to the Investor Education and Protection Fund as at the year end
93
Notes to consolidated Financial Statements (Contd.)
10. SHORT-TERM PROVISIONS
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Provision for Employee Benefi ts 1379.11 1259.95
Others
Provision for Income Tax (Net of Advance Tax) 2104.25 1651.52
Provision for Fringe Benefi t Tax (Net of Advance Tax) 66.38 100.23
Proposed Dividend 7863.10 6673.55
Provision for Tax on Proposed Dividend 2813.11 2373.43
Provision for Wealth Tax 32.00 35.00
14257.95 12093.68
11. TANGIBLE ASSETS Rs. in Lakhs
GROSS BLOCK AT COST OR VALUATION DEPRECIATION NET BLOCKParticulars As at
31st March,2012
Added on
Con -solidation
Additions/adjustments
during theyear
Disposal/adjustments
duringthe year
[Refer (a) and (c) below]
As at 31st March,
2013
Up to31st March,
2012 [Refer (e)
below]
Added on
Con -solidation
For the
year
On disposal/adjustments
duringthe year
[Refer (d)below]
Impairmentwritten back
during theyear
Up to31st March,
2013 [Refer (e)
below]
Written downvalue as at 31st March,
2013
Written downvalue as at 31st March,
2012
Estate and
Development 99201.63 - 131.23 233.28 99099.58 3779.11 - 53.76 (31.69) 353.15 3511.41 95588.17 95422.52
Freehold -
Land [Refer
(b) below] 3007.20 - 1305.12 - 4312.32 - - - - - - 4312.32 3007.20
Buildings 61813.60 - 3180.86 121.96 64872.50 19188.69 - 1295.78 16.85 405.69 20061.93 44810.57 42624.91
Plant and
Equipment 43899.63 - 4580.29 184.65 48295.27 27058.37 - 2297.85 51.99 141.16 29163.07 19132.20 16841.26
Furniture
and Fixtures 1691.45 - 122.70 9.30 1804.85 1014.17 - 81.85 6.46 - 1089.56 715.29 677.28
Vehicles 5905.69 - 613.02 365.96 6152.75 3344.79 - 481.43 320.22 - 3506.00 2646.75 2560.90
Offi ce
Equipment 656.28 - 41.15 2.83 694.60 388.87 - 33.82 0.61 - 422.08 272.52 267.41
Computer 625.17 - 111.68 37.22 699.63 452.70 - 58.69 33.32 - 478.07 221.56 172.47
31st March,
2013 216800.65 - 10086.05 955.20 225931.50 55226.70 - 4303.18 397.76 900.00 58232.12 167699.38 161573.95
31st March,
2012 201276.29 3223.54 11733.89 (566.93) 216800.65 50433.86 1096.39 3787.11 90.66 - 55226.70 161573.95
a) Includes Capital Subsidy in respect of following Tangible Assets
- Plant and Equipment - Rs. 175.66 lakhs (31.03.2012 - Rs. 271.39 lakhs)
- Vehicles - Rs. 56.62 lakhs (31.03.2012 - Rs. 15.86 lakhs)
b) Represents cost of proportionate share of undivided land pertaining to certain portion of a multistoried building
c) Net of foreign exchange adjustment of Rs. 2908.85 lakhs [31.03.2012 - Rs. 1963.74 lakhs]
d) Net of foreign exchange adjustment of Rs. 300.23 lakhs [31.03.2012 - Rs. 903.02 lakhs]
e) Th e opening and closing balance of Depreciation includes an Impairment Loss as set out below:-
During the year 2012-13, impaired loss has been reversed as under-
i) Estate and Development Rs. 151.35 lakhs, Building Rs. 173.84 lakhs and Plant & Equipment Rs. 24.81 lakhs aggregating Rs. 350.00 lakhs upon
sale of Jaibirpara Tea Estate.
ii) Estate and Development Rs. 322.01 lakhs, Building Rs. 151.81 lakhs and Plant & Equipment Rs. 76.18 lakhs aggregating Rs. 550.00 lakhs in the
nature of reversal of impairment loss by adopting discounted cash fl ow method ( based on value in use considering the discounting factor at
8.5 % in the current estimate and previous estimate) upon improvement in profi tability of Jainti Tea Estate. Out of this, Rs. 200.00 lakhs has
been added to Revaluation Reserve (Refer Note 3) and Rs. 350.00 lakhs has been subtracted from depreciation for the year (Refer Note 27)
Impairment Loss as at 31st March
2013
Rs. Lakhs
2012
Rs. Lakhs
Estate and Development 2087.17 2440.32
Buildings 811.56 1217.25
Plant and Equipment 221.27 362.43
3120.00 4020.00
94
Notes to consolidated Financial Statements (Contd.)
13. NON - CURRENT INVESTMENTS
31st March 2013 31st March 2012Rs. Lakhs Rs. Lakhs
(valued at cost unless stated otherwise)
(In Equity Shares of Rs. 10 each fully paid and at cost, except otherwise stated)
Long TermTrade
Investments in Equity Instruments - AssociatesUnquotedD1 Williamson Magor Bio Fuel Limited [Refer (b) below]
7281201 Shares (31.03.2012 - 7281201 Shares) 484.35 684.35
[Net of Provision other than temporary diminution in carrying amount of
investment - Rs. 321.87 lakhs (31.03.2012 - Rs. 324.38 lakhs)]
Investments in Equity Instruments - OthersQuotedMurablack India Limited
500000 Shares (31.03.2012 - 500000 Shares) * *
McNally Bharat Engineering Co. Limited
3052295 Shares (31.03.2012 - 3052295 Shares) 131.25 131.25
Williamson Financial Services Limited
1666853 Shares (31.03.2012 - 1666853 Shares) 485.89 519.33
[Net of Provision other than temporary diminution in carrying amount of
investment - Rs. 33.44 lakhs (31.03.2012 - Rs. Nil)]
Eveready Industries India Limited
1663289 Shares of Rs. 5/- each (31.03.2012 - 1663289 Shares) 169.66 169.66
Kilburn Engineering Limited
848168 Shares (31.03.2012 - 848168 Shares) 36.05 36.05
Th e Standard Batteries Limited
1003820 Shares of Re. 1/- each (31.03.2012 - 1003820 Shares) * *
Kilburn Chemicals Limited
350200 Shares (31.03.2012 - 350200 Shares) 14.04 14.04
Kilburn Offi ce Automation Limited
31340 Shares (31.03.2012 - 31340 Shares) 1.27 1.27
a) Th e above comprise :
i) Trade Mark (Brand - WM logo) of Rs. 5000.00 lakhs (31.03.12 - Rs. 5000.00 lakhs) acquired by the Parent Company which is being
amortised over a working life of 20 years on prudent basis based on the valuation obtained by the management, considering the factors
like eff ective life/utility; and
ii) Other Trade Marks of Rs. 2340.45 lakhs (31.03.12 - Rs. 2340.45 lakhs) acquired by a subsidiary, which are being amortised over the
expected economic lives of 5 to 20 years.
b) Net of foreign exchange adjustment of Rs. 130.48 lakhs (31.03.12 - Rs. 822.25 lakhs)
c) Net of foreign exchange adjustment of Rs. 97.52 lakhs (31.03.12 - Rs. 271.26 lakhs)
12. INTANGIBLE ASSETS Rs. in Lakhs
GROSS BLOCK AT COST AMORTISATION NET BLOCKParticulars As at
31st March,2012
Added on
Con -solidation
Additions/adjustments
during theyear
Disposal/adjustments
duringthe year
[Refer (b)below]
As at 31st March,
2013
Up to31st March,
2012
Added on
Con -solidation
For the
year
On disposal/adjustments
duringthe year
[Refer (c)below]
Up to31st March,
2013
Written downvalue as at 31st March,
2013
Written downvalue as at 31st March,
2012
Intangible Assets
Goodwill 20.44 - - - 20.44 20.44 - - - 20.44 - -
Goodwill on
Consolidation 20568.58 - - (400.51) 20969.09 - - - - - 20969.09 20568.58
Trade Mark
[Brand]
[Refer (a)
below] 7810.47 - - 1850.23 5960.24 3957.75 - 299.98 1859.14 2398.59 3561.65 3852.72
Computer
Software 3.65 - 615.08 (0.13) 618.86 3.65 - 30.33 (0.13) 34.11 584.75 -
31st March, 2013 28403.14 - 615.08 1449.59 27568.63 3981.84 - 330.31 1859.01 2453.14 25115.49 24421.30
31st March, 2012 27222.42 358.47 - (822.25) 28403.14 3416.14 - 294.44 (271.26) 3981.84 24421.30
95
Notes to consolidated Financial Statements (Contd.)
13. NON - CURRENT INVESTMENTS (Contd.)31st March 2013 31st March 2012
Rs. Lakhs Rs. Lakhs
UnquotedBabcock Borsig Limited
1299600 Shares (31.03.2012 - 1299600 Shares) 319.86 316.56
[Net of Provision other than temporary diminution in carrying
amount of investment - Rs. 363.48 lakhs (31.03.2012 - Rs. 359.74
lakhs)]
Dewrance Macneill & Co. Limited
200000 Shares (31.03.2012 - 200000 Shares) * *
Kilburn Electricals Limited
28000 Shares (31.03.2012 - 28000 Shares) * *
Cosepa Fiscal Industries Limited
350000 Shares (31.03.2012 - 350000 Shares) * *
Delhi Golf & County Club Private Limited
35750 Shares of Rs.100/- each (31.03.2012 - 35750 Shares) * *
Project India Blend Private Limited
Written off during the year (31.03.2012 - 250000 Shares) - -
[Net of Provision other than temporary diminution in carrying
amount of investment - Rs. Nil (31.03.2012 - Rs. 8.25 lakhs)]
Other than TradeInvestments in Equity Instruments - OthersQuotedSuryachakra Seafood Limited
400000 Shares (31.03.2012 - 400000 Shares) * *
UnquotedJalpaiguri Club Limited
523 Shares (31.03.2012 - 523 Shares) - -
Johnston Casting and Allied Industries Limited
Written off during the year (31.03.2012 - 3500 Shares) - -
Indonilpur Marketing Pvt. Ltd.
(formerly known as Nilpur Marketing Pvt. Limited )
12500 Shares (31.03.2012 - 12500 Shares) - -
[Net of Provision other than temporary diminution in carrying
amount of investment - Rs. 1.25 lakhs (31.03.2012 - Rs. 1.25 lakhs)]
Nilhat Shipping Company Limited
1000 Shares (31.03.2012 - 1000 Shares) - -
[Net of Provision other than temporary diminution in carrying
amount of investment - Rs. 0.10 lakhs (31.03.2012 - Rs. 0.10 lakhs)]
Woodlands Multispeciality Hospital Limited
229610 Shares (31.03.2012 - 229610 Shares) 22.35 22.35
[Net of Provision other than temporary diminution in carrying
amount of investment - Rs. 0.01 lakhs (31.03.2012 - Rs. 0.01 lakhs)]
Investments in Preference shares UnquotedTh akurbari Club Limited
56 Preference Shares of Rs.100 each (31.03.2012 - 56
Preference Shares)
* *
CFL Capital Financial Services Ltd. -
1154790 13% Reedemable Cumulative Preference Shares of Rs.100 each (31.03.2012 - 1154790 Preference Shares)
- -
[Net of Provision other than temporary diminution in carrying amount
of investment - Rs. 1160.56 lakhs (31.03.2012 - Rs. 1160.56 lakhs)]
96
Notes to consolidated Financial Statements (Contd.)
13. NON - CURRENT INVESTMENTS (Contd.)31st March 2013 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
Investments in Government or trust securitiesQuoted
8% Government of India Loan - 2011 - 1.26
9% Government of India Loan - 2013 0.63 0.63
UnquotedNational Defence Bond (Deposited with Excise Authorities) 0.02 0.02
1665.37 1896.77*Amount is below the rouding off norm adopted by the Company.
(a) Aggregate amount of quoted investments 872.23 873.49
Aggregate market value of quoted investments 3023.33 3829.42
Aggregate amount of unquoted investments; 2673.85 2877.57
Aggregate provision for diminution in value of investments 1880.71 1854.29
(b) Investment in D1 Williamson Magor Bio Fuel Limited
(Associate Company) [Refer Note 29(b)]
Shares in Net Assets on Acquisition 1610.01 1610.01
Add : Goodwill arising on Acquisition 574.35 574.35
Cost of Investment 2184.36 2184.36
Less : Group's share in accumulated loss:
As per last account 1175.63 844.13
Loss for the year 202.51 1378.14 331.50 1175.63
806.22 1008.73
Less : Provision for diminution 321.87 324.38
484.35 684.35
14. LONG-TERM LOANS AND ADVANCES
31st March 2013 31st March 2012Rs. Lakhs Rs. Lakhs
(Unsecured - considered good unless otherwise stated)
[Refer Note 32]
Capital Advances 739.24 1741.72
Security Deposits;
Considered good 1256.90 1165.28
Considered doubtful 26.25 61.49
Less: Allowance for Doubtful Security Deposits (26.25) (61.49)
Deposits with National Bank for Agriculture and Rural Development 12938.67 8354.14
Other Loans and Advances
MAT Credit Entitlement 2582.51 1385.96
Prepaid Expenses 384.12 405.24
Advances to Suppliers, Service Providers etc. 1217.20 1217.20
Loans to Others 850.00 850.00
Loans to Employees 37.08 38.56
Loans to Related Parties (Key Management Personnel) (a) 1.93 4.33
20007.65 15162.43(a) Such loans to key managerial personnel who are directors of the Parent Company were originally initiated as advances to employees in the
books of Eveready Industries India Limited, taken over in terms of a Scheme of Arrangement in 2004-05.
97
Notes to consolidated Financial Statements (Contd.)
15. OTHER NON-CURRENT ASSETS
(Refer Note 32)
31st March 2013 31st March 2012Rs. Lakhs Rs. Lakhs
Book value of Investments held through Trust - 2,70,67,500 (31.03.12 -
2,70,67,500) Equity Shares of Rs. 5/- each in the Parent Company pursuant to
a Scheme of Arrangement and a Scheme of Amalgamation given eff ect to in
earlier years 892.79 892.79
Margin Money Deposit with bank (a) 13.98 13.98
Other Long Term Receivable
From Sale of Tea Estates 198.76 198.76
Receivables from Tea Growers 389.74 391.99
Interest Accrued on Loans and Deposits 2284.22 2284.22
3779.49 3781.74(a) For issuing Bank Guarantee
16. INVENTORIES
At lower of cost and net realisable value
Finished Goods (Stock of Tea) 6199.38 5371.96
[including in transit Rs. 272.97 lakhs (31.03.2012 - Rs. 191.56 lakhs)]
Stores and Spares 10883.83 7106.74
17083.21 12478.70
17. TRADE RECEIVABLES
Debts outstanding for a period exceeding six months from the date they are
due for payment -
Secured
- Considered Good 350.00 350.00
Unsecured
- Considered Good 690.49 547.20
- Considered Doubtful 394.08 217.02
Less: Provision for Doubtful Debts (394.08) (217.02)
Other Debts -
Unsecured
- Considered Good 3017.05 2068.69
4057.54 2965.89
18. CASH AND BANK BALANCES
A. Cash and Cash EquivalentsCash on hand 71.12 162.39
Balance with banks in Current Accounts 4320.90 3007.06
Dividend Accounts* 241.95 171.24
Escrow Accounts/Fractional Share Sale Proceeds Account 0.61 0.61
4634.58 3341.30*Earmarked for payment of unclaimed dividend
(a) Magin Money Deposit kept with bank for issuing guarantee in favour of Th ird party has been disclosed under Other
Non-Current Assets (Refer Note 15)
98
Notes to consolidated Financial Statements (Contd.)
19. SHORT-TERM LOANS AND ADVANCES
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
(Unsecured - considered good unless otherwise stated)
Loans to Related Parties
- Key Managerial Personnel (a) 249.81 2.53
Loans to Others
Considered Good 418.18 622.89
Considered Doubtful 248.00 248.00
Less: Provision for Bad and Doubtful Loans (248.00) (248.00)
Deposits with National Bank for Agriculture and Rural Development 4000.00 4000.00
Other Loans and Advances
MAT Credit Entitlement 1058.56 475.23
Advance Tax 2654.17 1489.45
Prepaid Expenses 793.58 703.02
Balance with Excise Authorities 11.33 12.03
Advance for Employee Benefi ts 787.05 725.77
Advance to Employees 586.77 290.76
Advance to Suppliers, Service Providers etc.
Considered Good 3268.52 3360.17
Considered Doubtful 103.88 92.15
Less: Provision for bad and Doubtful Advances (103.88) (92.15)
Loans to Employees 101.86 203.09
Deposit with Government Authorities 55.00 41.42
Claim Receivable 461.91 126.39
Tax payment under protest (Refer Note 38) 700.00 700.00
15146.74 12752.75
(a) Such loans to key managerial personnel who are directors were originally initiated as advances to employees in the books
of Eveready Industries India Limited taken over in terms of a Scheme of Arrangement in 2004-05.
20. OTHER CURRENT ASSETS
(Unsecured - considered good unless otherwise stated)
Interest Accrued on Loans and Deposits
Considered good 932.61 755.74
Considered Doubtful 173.35 173.35
Less: Provision for Doubtful Interest Receivable (173.35) (173.35)
Subsidies receivable from Government 1631.92 1586.21
Compensation receivable from Government 77.79 36.98
Accrued duty exemption benefi ts pertaining to exports 1883.71 1446.21
Foreign Exchange Derivative Assets - 383.80
4526.03 4208.94
99
Notes to consolidated Financial Statements (Contd.)
(a) Includes adjustment relating to exchange diff erence etc. Rs. 34.49 lakhs (31.03.12 - Rs. 8.42 lakhs)
21. REVENUE FROM OPERATIONS
Year ended 31st March 2013 Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
Sale of Products
- Tea 162690.38 141126.36
- Tea Waste 257.16 162947.54 72.36 141198.72
Other Operating Revenues
Consultancy Fees 196.31 22.89
Subsidy on Orthodox Tea 228.40 100.84
Replantation Subsidy 382.50 546.53
Transport Subsidy 356.47 301.78
Accrued duty exemption entitlement and other
Benefi ts relating to exports / premium on sale thereof 2743.92 3907.60 2360.93 3332.97
166855.14 144531.69
22. OTHER INCOME
Interest Income (Gross)
On Deposits 983.16 789.45
On Loans 1099.40 1382.78
On Tax Refunds 7.16 2089.72 189.79 2362.02
Interest Subsidy - 567.81
Dividend on Long Term Trade Investments 35.78 94.09
Insurance Claims 302.20 227.52
Sundry Income 335.95 305.68
Profi t on Disposal of Fixed Assets (net) 380.91 182.58
Liabilities no Longer Required Written Back 297.76 367.22
3442.32 4106.92
23. COST OF MATERIALS CONSUMED
Year ended 31st March 2013
Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs
Green Leaf (purchased and consumed) 23795.19 15139.82
23795.19 15139.82
24. CHANGES IN INVENTORIES OF FINISHED GOODS
Stock of Tea at the beginning of the year (a) 5406.45 4644.62
Less: Stock of Tea at the end of the year 6199.38 5371.96
(Increase)/Decrease (792.93) (727.34)
25. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages 41358.79 35990.55
Contribution to Provident and Other Funds 5606.24 4618.41
Labour and Staff Welfare 5653.73 5277.82
52618.76 45886.78
100
Notes to consolidated Financial Statements (Contd.)
26. FINANCE COSTS
Year ended 31st March 2013 Year ended 31st March 2012
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
Interest Expense
On Fixed Loans 1963.05 2216.75
Others 3001.10 4964.15 3195.21 5411.96
Other Borrowing Costs 140.79 262.46
5104.94 5674.42
27. DEPRECIATION AND AMORTISATION
Depreciation on Tangible Assets 4303.18 3787.11
Less : Withdrawn on account of Depreciation on amount
added on Revaluation of Tangible Assets (Refer
Note 3) (363.75) (384.92)
Less : Reversal of Impairment Loss (Refer Note 11) (350.00) 3589.43 - 3402.19
Amortisation of Intangible Assets 330.31 294.44
3919.74 3696.63
28. OTHER EXPENSES
Consumption of Stores and Spare Parts 8106.79 7234.33
Consumption of Packing Materials 1062.03 1118.46
Power and Fuel 16804.59 13534.49
Rent 103.11 237.58
Lease Rent 25.66 8.18
Repairs
- Buildings 1609.64 1878.46
- Machinery 3213.27 2690.13
- Others 1368.41 1355.48
Insurance 880.84 619.98
Rates and Taxes [including wealth Tax Rs. 32.00 lakhs
(2011-2012 - Rs. 35.00 Lakhs)] 785.35 431.31
Cess on Black Tea 409.92 395.55
Assam Green Leaf Cess 991.41 1116.10
Travelling 1498.20 1397.85
Legal and Professional Fees 1108.82 1032.06
Freight, Shipping and Selling Expenses 7868.81 6996.85
Brokerage on Sales 693.32 649.80
Selling Agents' Commission 417.49 459.76
Loss on Sale/Disposal of Investments 8.25 -
Less : Adjusted from Provisons (8.25) - - -
Security Deposit written off 35.24 -
Less : Adjusted from Provisons (35.24) - - -
Bad Debts written off 2.28 -
Provision for Doubtful Debts 177.06 3.10
Provision for Doubtful Advances 11.73 -
Net Loss on Foreign Currency Transaction and Translation 158.02 664.93
Loss on Derivative Contracts 213.96 54.01
Miscellaneous Expenses 3811.24 3223.53
51321.95 45101.94
101
Notes to consolidated Financial Statements (Contd.)
29. (a) Th e Consolidated Financial Statements for the year comprise the fi nancial statements of the Parent Company and its subsidiary companies as detailed below:-
Name of the CompanyCountry of
Incorporation
Proportion of Ownership Interest as at 31st March Reporting Date
2013 2012
Subsidiaries
i) Borelli Tea Holdings Limited (BTHL) United
Kingdom
100% 100% 31st March
ii) Phu Ben Tea Company Limited (Phu Ben) Vietnam 100% 100% 31st December
iii) Rwenzori Tea Investments Limited (RTIL) Uganda 100% 100% 31st December
iv) Mcleod Russel Uganda Limited (MRUL) Uganda 100% 100% 31st December
v) Olyana Holdings LLC (OHL) upto 25th June 2012 U.S.A. - 95% 31st December
vi) Gisovu Tea Company Limited (GTCL) Rwanda 60% 60% 31st December
vii) McLeod Russel Middle East (MRME) United Arab
Emirates
100% 100% 31st March
(b) Th e Consolidated Financial Statements also include the Group’s interest in the following Associate Company accounted for under equity method based on their fi nancial statements:
Associate
Country of Incorporation
Proportion of Ownership Interest as at 31st March
2013 2012
D1 Williamson Magor Bio Fuel Limited India 34.30% 34.30%
(c) Olyana Holdings LLC (USA), a step down subsidiary of the company has been closed down for not having business activity, after having complied with the required formalities.
Rs. Lakhs
1st April 2012 to 25th June 2012
Year ended 31st March 2012
Income - -
ExpenditureOther Expenses 0.09 9.10
Profi t before taxation for the period year (0.09) (9.10)
Taxation - -
Profi t after taxation for the period/year (0.09) (9.10)
Equity & LiabilitiesShareholders’ Fund
Share Capital 1582.30 1582.30
Reserves & Surplus (1582.30) (1582.21)
Current Liabilities
Trade Payble - 5.86
Total - 5.95AssetsCurrent Assets
Cash & Cash Equivalents - 5.95
Total - 5.95
102
Notes to consolidated Financial Statements (Contd.)
30. Schemes of Amalgamation/Scheme of Arrangement given eff ect to in earlier years
Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the
Schemes, such assets and liabilities remain included in the books of the Parent Company under the name of the
transferor companies (including other companies which were amalgamated with the transferor companies from time to
time).
31. Employee Benefi ts :
I. Post Employment Defi ned Contribution Plans: During the year an amount of Rs. 3999.76 lakhs (31st March 2012 - Rs. 3449.67 lakhs) has been recognised as
expenditure towards Defi ned Contribution plans of the Parent Company.
II. Post Employment Defi ned Benefi t Plans:
(a) Gratuity (Funded) Th e Parent Company’s gratuity scheme, a defi ned benefi t plan, covers the eligible employees and is
administered through certain gratuity fund trusts. Such gratuity funds, whose investments are managed
by insurance companies/trustees themselves, make payments to vested employees or their nominees
upon retirement, death, incapacitation or cessation of employment, of an amount based on the respective
employee’s salary and tenure of employment subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs
upon completion of fi ve years of service.
(b) Superannuation (Funded) Th e Parent Company’s Superannuation scheme, a Defi ned Benefi t plan, is administered through trust funds
and covers certain categories of employees. Investments of the funds are managed by insurance companies
/trustees themselves. Benefi ts under these plans had been frozen in earlier years with regard to salary levels
then prevailing with the exception of a few employees. Upon retirement, death or cessation of employment,
Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure
periodic pension. Such superannuation benefi ts are based on respective employee’s tenure of employment
and salary.
(c) Staff Pension – Type A (Funded) Th e Parent Company’s Staff Pension Scheme – Type A, a Defi ned Benefi t plan, is administered through a trust
fund and covers certain categories of employees. Investments of the fund are managed by Life Insurance
Corporation of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her
nominee upon retirement, death or cessation of service based on the respective employee’s salary and tenure
of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion
of twenty years of service.
(d) Staff Pension – Type B (Unfunded) Th e Parent Company’s Staff Pension Scheme – Type B, a Defi ned Benefi t Plan, covers certain categories of
employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon
retirement, death or cessation of service based on the respective employee’s salary and tenure of employment
subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years
of service.
(e) Medical Insurance Premium Re-imbursement (Unfunded) Th e Parent Company has a scheme of re-imbursement of medical insurance premium to certain categories
of employees and their surviving spouses, upon retirement, subject to a monetary limit. Th e company has
introduced a scheme of re-imbursement of medical expenses to a certain category of employees up to a
certain monetary limit. Th e scheme is in the nature of Defi ned Benefi t plan.
(f) Expatriate Pension (Unfunded)
Th e Parent Company has an informal practice of paying pension to certain categories of retired expatriate
employees and in certain cases to their surviving spouses. Th e scheme is in the nature of Defi ned Benefi t plan.
Th e following Tables sets forth the particulars in respect of aforesaid Defi ned Benefi t plans of the Parent
Company for the year ended 31st March, 2013 and corresponding fi gures for the previous year.
103
Notes to consolidated Financial Statements (Contd.)
Description
Gratuity Fund (Funded)2012-2013
Rs. Lakhs
2011-2012 Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 10574.50 9579.29
Interest Cost 802.21 775.77
Current Service Cost 687.90 573.76
Past Service Cost - -
Benefi ts Paid 1093.67 905.26
Actuarial loss/(gain) on obligation 786.18 550.94
Present Value of obligation at the end of the year 11757.12 10574.50
Changes in the fair value of plan assets during the year ended 31st March
Fair Value of Plan Assets at the beginning of the year 10920.69 9773.53
Expected Return on Plan Assets 873.66 781.88
Contributions 1099.60 1323.42
Benefi ts Paid 1093.67 905.26
Actuarial gain/(loss) on Plan Assets 231.30 (52.88)
Fair Value of Plan Assets at the end of the year 12031.58 10920.69
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 11757.12 10574.50
Fair Value of Plan Assets at end of the year 12031.58 10920.69
Net Asset/(Liability) Recognised in Balance Sheet 274.46 346.19
Expense Recognised in Profi t and Loss Statement
Current Service Cost 687.90 573.76
Past Service Cost - -
Interest Cost 802.21 775.77
Expected Return on Plan Assets 873.66 781.88
Actuarial loss/(gain) recognised in the year 554.88 603.82
Expense Recognised in Profi t and Loss Statement @ 1171.33 @ 1171.47
@ included in Contribution to Provident and Other Funds (Note 25)
Category of Plan Assets
Investments in Bonds and Special Deposit 30.97 36.21
Investments with Life Insurance Corporation of India 1962.17 1797.08
Investments with other Insurance Companies 9952.47 9006.92
Others including Bank Balances 85.97 80.48
Total 12031.58 10920.69
Actual Return on Plan Assets 1104.96 729.00
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Infl ation Rate (%) 5.0 5.0
Return on Asset (%) 8.0 8.0
Rs. Lakhs
104
Notes to consolidated Financial Statements (Contd.)
Description
Superannuation Fund (Funded)2012-2013
Rs. Lakhs
2011-2012 Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 1910.35 1879.33
Interest Cost 146.20 156.68
Current Service Cost - -
Benefi ts Paid 165.77 71.98
Actuarial loss/(gain) on obligation (41.02) (53.68)
Present Value of obligation at the end of the year 1849.76 1910.35
Changes in the fair value of plan assets during the year ended 31st March
Fair Value of Plan Assets at the beginning of the year 2297.83 2209.49
Expected Return on Plan Assets 183.83 176.76
Contributions - -
Benefi ts Paid 165.77 71.98
Actuarial gain/(loss) on Plan Assets 49.85 (16.44)
Fair Value of Plan Assets at the end of the year 2365.74 2297.83
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 1849.76 1910.35
Fair Value of Plan Assets at end of the year 2365.74 2297.83
Net Asset/(Liability) Recognised in Balance Sheet 515.98 387.48
Expense Recognised in Profi t and Loss Statement
Current Service Cost - -
Interest Cost 146.20 156.68
Expected Return on Plan Assets 183.83 176.76
Actuarial loss/(gain) recognised in the year (90.87) (37.24)
Expense Recognised in Profi t and Loss Statement @ (128.50) @ (57.32)
@ Included in Contribution to Provident and other Funds (Note 25)
Category of Plan Assets
Investments in Bonds and Special Deposit 47.80 64.24
Investments with Life Insurance Corporation of India 209.07 203.12
Investments with other Insurance Companies 2080.25 2004.24
Others including Bank Balances 28.62 26.23
Total 2365.74 2297.83
Actual Return on Plan Assets 233.68 160.32
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Return on Asset (%) 8.0 8.0
105
Notes to consolidated Financial Statements (Contd.)
Description
Staff Pension Fund Type A (Funded)2012-2013
Rs. Lakhs
2011-2012 Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 396.96 441.38
Interest Cost 31.74 36.58
Current Service Cost 51.60 39.38
Benefi ts Paid 0.31 21.95
Actuarial loss/(gain) on obligation (43.08) (98.43)
Present Value of obligation at the end of the year 436.91 396.96
Changes in the fair value of plan assets during the year ended 31st March
Fair Value of Plan Assets at the beginning of the year 90.76 105.24
Expected Return on Plan Assets 7.26 8.42
Contributions 0.31 0.23
Benefi ts Paid 0.31 21.95
Actuarial gain/(loss) on Plan Assets 0.14 (1.18)
Fair Value of Plan Assets at the end of the year 98.16 90.76
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 436.91 396.96
Fair Value of Plan Assets at end of the year 98.16 90.76
Net Asset/(Liability) Recognised in Balance Sheet (338.75) (306.20)
Expense Recognised in Profi t and Loss Statement
Current Service Cost 51.60 39.38
Interest Cost 31.74 36.58
Expected Return on Plan Assets 7.26 8.42
Actuarial loss/(gain) recognised in the year (43.22) (97.25)
Expense Recognised in Profi t and Loss Statement @ 32.86 @ (29.71)
@ Included in Contribution to Provident and Other Funds (Note 25)
Category of Plan Assets
Investments with Life Insurance Corporation of India 98.16 90.76
Total 98.16 90.76
Actual Return on Plan Assets 7.40 7.24
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Infl ation Rate (%) 5.0 5.0
Return on Asset (%) 8.0 8.0
106
Notes to consolidated Financial Statements (Contd.)
Description
Staff Pension Type B (Unfunded)2012-2013
Rs. Lakhs
2011-2012 Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March Present value of obligation at the beginning of the year 2803.16 2686.96
Interest Cost 218.71 222.49
Current Service Cost 267.75 182.63
Benefi ts Paid 138.65 138.83
Actuarial loss/(gain) on obligation (73.40) (150.09)
Present Value of obligation at the end of the year 3077.57 2803.16
Amount recognised in Balance SheetPresent Value of obligation at the end of the year 3077.57 2803.16
Fair Value of Plan Assets at the end of the year - -
Net Asset/(Liability) Recognised in Balance Sheet (3077.57) (2803.16)
Expense Recognised in Profi t and Loss StatementCurrent Service Cost 267.75 182.63
Interest Cost 218.71 222.49
Expected Return on Plan Assets - -
Actuarial loss/(gain) recognised in the year (73.40) (150.09)
Expense Recognised in Profi t and Loss Statement # 413.06 # 255.03
# included in Salaries and Wages (Note 25)
Principal Actuarial AssumptionsDiscount Rate (%) 8.0 8.5
Infl ation Rate (%) 5.0 5.0
Description
Medical Benefi t Liability (Unfunded)2012-2013
Rs. Lakhs
2011-2012 Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March Present value of obligation at the beginning of the year 326.50 282.73
Interest Cost 26.12 24.03
Current Service Cost - -
Benefi ts Paid 22.98 22.57
Actuarial loss/(gain) on obligation 90.01 42.31
Present Value of obligation at the end of the year 419.65 326.50
Amount recognised in Balance SheetPresent Value of obligation at the end of the year 419.65 326.50
Fair Value of Plan Assets at the end of the year - -
Net Asset/(Liability) Recognised in Balance Sheet (419.65) (326.50)
Expense Recognised in Profi t and Loss StatementCurrent Service Cost - -
Interest Cost 26.12 24.03
Expected Return on Plan Assets - -
Actuarial loss/(gain) recognised in the year 90.01 42.31
Expense Recognised in Profi t and Loss Statement * 116.13 * 66.34
* included in Insurance (Note 28)
Principal Actuarial AssumptionsDiscount Rate (%) 8.0 8.5
107
Notes to consolidated Financial Statements (Contd.)
Description
Expatriate Pension (Unfunded)2012-2013
Rs. Lakhs
2011-2012 Rs. Lakhs
Changes in present value of defi ned benefi t obligation during the year ended 31st March
Present value of obligation at the beginning of the year 42.65 43.46
Interest Cost 1.81 2.36
Current Service Cost - -
Benefi ts Paid 39.98 31.49
Actuarial loss/(gain) on obligation 34.50 28.32
Present Value of obligation at the end of the year 38.98 42.65
Amount recognised in Balance Sheet
Present Value of obligation at the end of the year 38.98 42.65
Fair Value of Plan Assets at the end of the year - -
Net Asset/(Liability) Recognised in Balance Sheet (38.98) (42.65)
Expense Recognised in Profi t and Loss Statement
Current Service Cost - -
Interest Cost 1.81 2.36
Expected Return on Plan Assets - -
Actuarial loss/(gain) recognised in the year 34.50 28.32
Expense Recognised in Profi t and Loss Statement # 36.31 # 30.68
# included in Salaries and Wages (Note 25)
Principal Actuarial Assumptions
Discount Rate (%) 8.0 8.5
Th e estimates of rate of infl ation in salary considered in actuarial valuation, take into account infl ation, seniority,
promotion and other relevant factors including supply and demand in the employment sphere.
Plan assets represent investment in various categories. Th e return on amounts invested with LIC is declared
annually by them. Return on amounts invested with Insurance Companies, other than LIC, is mostly by way of Net
Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and
Special Deposit carry a fi xed rate of interest.
Th e expected return on plan assets is determined after taking into consideration composition of the plan assets
held, assessed risk of asset management and other relevant factors.
108
Notes to consolidated Financial Statements (Contd.)
Other Particulars
31st March2013 2012 2011 2010 2009
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
Gratuity Fund (Funded)
Defi ned Benefi t Obligation 11757.12 10574.50 9579.29 8508.40 6903.02
Plan Assets 12031.58 10920.69 9773.53 7100.68 4952.18
Surplus/(Defi cit) 274.46 346.19 194.24 (1407.72) (1950.84)
Experience Adjustments on Plan Liabilities 535.36 939.06 499.79 235.67 (1.77)
Experience Adjustments on Plan Assets 231.30 (52.88) 57.67 306.47 (51.77)
Superannuation Fund (Funded)
Defi ned Benefi t Obligation 1849.76 1910.35 1879.33 2018.52 2222.68
Plan Assets 2365.74 2297.83 2209.49 2233.99 2031.74
Surplus/(Defi cit) 515.98 387.48 330.16 215.47 (190.94)
Experience Adjustments on Plan Liabilities (63.34) (36.74) (23.17) (8.67) 67.79
Experience Adjustments on Plan Assets 49.84 (16.44) (20.80) 141.63 (88.31)
Staff Pension Fund Type A (Funded)
Defi ned Benefi t Obligation 436.91 396.96 441.38 407.45 373.73
Plan Assets 98.16 90.76 105.24 98.55 113.81
Surplus/(Defi cit) (338.75) (306.20) (336.14) (308.90) (259.92)
Experience Adjustments on Plan Liabilities (108.33) (30.19) 4.21 1.71 12.58
Experience Adjustments on Plan Assets 0.14 (1.18) 0.05 0.09 (58.99)
Staff Pension Fund Type B (Unfunded)
Defi ned Benefi t Obligation 3077.57 2803.16 2686.96 2537.87 2241.47
Plan Assets NA NA NA NA NA
Surplus/(Defi cit) NA NA NA NA NA
Experience Adjustments on Plan Liabilities (164.59) (69.00) 112.42 47.53 (88.07)
Experience Adjustments on Plan Assets NA NA NA NA NA
Medical Benefi t Liability (Unfunded)
Defi ned Benefi t Obligation 419.65 326.50 282.73 289.88 291.04
Plan Assets NA NA NA NA NA
Surplus/(Defi cit) NA NA NA NA NA
Experience Adjustments on Plan Liabilities 64.13 (14.55) (10.95) (4.51) (0.17)
Experience Adjustments on Plan Assets NA NA NA NA NA
Expatriate Pension (Unfunded)
Defi ned Benefi t Obligation 38.98 42.65 43.46 59.02 85.60
Plan Assets NA NA NA NA NA
Surplus/(Defi cit) NA NA NA NA NA
Experience Adjustments on Plan Liabilities 25.88 28.80 5.59 7.52 (10.30)
Experience Adjustments on Plan Assets NA NA NA NA NA
NA: Not Applicable
109
Notes to consolidated Financial Statements (Contd.)
g) Provident Fund: Contributions towards provident funds are recognised as expense for the year. Th e Parent Company has set up
Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the
employees and the Parent Company make monthly contributions to the Funds at specifi ed percentage of the
employee’s salary and aggregate contributions along with interest thereon are paid to the employees/nominees
at retirement, death or cessation of employment. Th e Trusts invest funds following a pattern of investments
prescribed by the Government. Th e interest rate payable to the members of the Trusts is not lower than the rate of
interest declared annually by the Government under Th e Employees’ Provident Funds and Miscellaneous Provisions
Act, 1952 and shortfall, if any, on account of interest is to be made good by the Parent Company.
In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefi ts issued by
the Accounting Standard Board of Th e Institute of Chartered Accountants of India (ICAI), a provident fund set up by
the Parent Company is defi ned benefi t plan in view of the Parent Company’s obligation to meet shortfall, if any, on
account of interest.
Th e Actuary has carried out actuarial valuation of plan’s liabilities and interest rate guarantee obligations as at the
balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note
29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with
regard to interest rate obligation of the Parent Company as at the balance sheet date. Further during the year,
the Parent Company’s contribution of Rs. 284.90 lakhs (31st March 2012 – Rs. 237.07 lakhs) to the Provident Fund
Trust has been expensed under the “Contribution to Provident and Other Funds’. Disclosures given hereunder are
restricted to the information available as per the Actuary’s report.
(h) Gratuity Plan (Unfunded) in respect of MRUL, a subsidiary company: MRUL’s terms and conditions of employment provide for a gratuity to Ugandan nationals employed by the
company. Th e gratuity is payable after completion of fi ve years’ service upon resignation, retirement or termination
and on condition that the employee leaves honourably. Th e gratuity is calculated at twenty working days per year of
service for employees with fi ve to ten years service and thirty working days per year of service for those with more
than ten years service. Th e provision takes account of service rendered by employees up to the balance sheet date
and is accounted for on the full liability method.
(i) Gratuity Plan (Unfunded) in respect of MRME, a subsidiary company: Provision is made for end-of-service gratuity payable to the staff at the balance sheet date in accordance with
United Arab Emirates labour law.
2012-2013 2011-2012
Principal Actuarial Assumptions
Discount Rate 8.50% 8.50%
Expected Return on Exempted Fund 8.90% 8.90%
Expected EPFO Return 8.50% 8.25%
110
Notes to consolidated Financial Statements (Contd.)
32. Th ere are certain overdue loans and advances, interest accrued on loans and other recoverable items aggregating Rs.
4351.42 lakhs (31st March 2012 - Rs. 4351.42 lakhs). Th ese advances became overdue on account of the sluggish market
conditions and the resultant diffi culty in liquidating the assets by these parties. Th e management is actively continuing
to pursue options for recovery of these loans and advances. As a measure of prudence, and in the management’s best
judgement Rs. 4351.42 lakhs (31st March 2012 - Rs. 4351.42 lakhs) is being held in provision for contingency, for overdue,
loans and advances etc. at the year end (Refer Note 6).
33. Contingent Liabilities
a) Claims against the Company not acknowledged as debts : -
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Sales Tax 52.14 26.37
Electricity Dues 29.27 29.27
Assam Pollution Control Board - 7.41
Provident Fund 68.43 68.43
Income Tax 150.10 247.65
Service Tax 70.13 75.48
Disputed Labour Claims 31.10 80.22
Duty on Tea stock 18.23 18.13
Others 1.53 2.34
b) Bank Guarantees Rs. 117.58 lakhs (31st March 2012 - Rs. 102.94 lakhs)
c) Bills Discounted – Rs. 9490.76 lakhs (31st March 2012– Rs. 1014.45 lakhs)
34. TAXATION
Current Tax charge for the year, in case of the Parent Company, has been reckoned after taking into account, benefi t under
Section 33AB of the Income Tax Act, 1961 (which are available on timely deposit of required amount with development bank).
35. COMMITTMENTS
Estimated capital commitment on account of contracts remaining to be executed and not provided for at the year- end
is Rs. 3471.99 lakhs (31st March 2012 - Rs. 3719.85 lakhs). Such commitment, net of advances is Rs. 1687.36 lakhs (31st
March 2012 - Rs. 1978.13 lakhs).
36. SEGMENT INFORMATION
Th e Group is primarily engaged in the business of cultivation, manufacture and sale of tea across various geographical
locations with diff erent political and economic environment, risks and returns etc, and accordingly geographical segments
has been considered by the Group as primary reporting format.
Th e geographical segments have been identifi ed as India, Vietnam, Uganda and Rwanda.
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Segment RevenueIndia 137468.45 123532.57
Vietnam 6519.62 4091.57
Uganda 16325.83 14275.40
Rwanda 4333.74 2413.18
Other 2207.50 218.97
Total 166855.14 144531.69
111
Notes to consolidated Financial Statements (Contd.)
36. SEGMENT INFORMATION (Contd.)
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Segment Results (Profi t before Interest and Tax)India @ 27787.10 28587.41
Vietnam 728.34 199.51
Uganda 4680.53 5346.27
Rwanda 2092.75 1379.42
Other 5087.51 (84.00)
Total 40376.23 35428.61Less : Finance Cost 5104.94 5674.42
Exceptional Items 30.93 868.19
Unallocable 2731.89 (3920.13)
Profi t before Taxation, share of Earnings from Associates and Minority Interest 32508.47 32806.13Less : Taxation Charge
Current Tax 6189.25 6672.63
Less : MAT Credit (1779.88) (1022.19)
Provision/(write back) relating to earlier years (612.72) (2363.27)
Deferred Tax 500.52 93.27
Profi t after Taxation but before share of Earning from Associates and Minority Interest 28211.30 29425.69@ Refer Note 11 (e) on Consolidated Financial Statements
Segment AssetsIndia 182731.99 174112.20
Vietnam 5493.33 5078.14
Uganda 17954.90 16736.09
Rwanda 4895.00 3950.19
Other 26278.85 25448.81
237354.07 225325.43Unallocable 30348.59 20796.64
267702.66 246122.07Segment Liabilities
India 72960.36 72715.59
Vietnam 4068.33 4123.37
Uganda 4452.65 5431.92
Rwanda 1065.19 1014.29
Other 8461.51 10975.90
91008.04 94261.07Unallocable 176694.62 151861.00
267702.66 246122.07
112
Notes to consolidated Financial Statements (Contd.)
36. SEGMENT INFORMATION (Contd.)
31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs
Acquisition of Fixed Assets relating to SegmentsIndia 8630.68 10648.23
Vietnam 421.65 212.93
Uganda 1528.47 2127.96
Rwanda 569.21 251.13
11150.01 13240.25Depreciation and Amortisation relating to Segments
India * 2871.42 2940.14
Vietnam 227.98 215.81
Uganda 658.18 450.59
Rwanda 89.20 40.77
Other 72.96 49.32
3919.74 3696.63* Net of Reversal of Impairment Loss – Rs. 350.00 Lakhs (31.03.2012 – Rs. Nil)
Signifi cant non-cash expenses other than Depreciation and Amortisation relating to Segments
- -
Th e Group does not have any Secondary Segment
37. Information given in accordance with the requirement of Accounting Standard 18 on Related Party Disclosures prescribed
under the Act : -
a) List of Related Parties i. Key Management Personnel (of the Parent Company)
Managing Director Mr. Aditya Khaitan (AK)
Wholetime Directors Mr. R. Takru (RT)
Mr. A. Monem (AM)
Mr. K. K. Baheti (KKB)
ii. Relatives of Key Management Personnel with whom transactions took place during the year.
Mr. B. M. Khaitan (BMK) Father of Mr. Aditya Khaitan
Mr. D. Khaitan (DK) Brother of Mr. Aditya Khaitan
iii. Others :
- Associate :
D1 Williamson Magor Bio Fuel Limited (D1)
b) Transactions / Balances with Key Management Personnel Remuneration Dividend paid Loan Outstanding as at
2012-13 2011-12 2012-13 2011-12 31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
AK 278.58 248.50 0.43 0.36 - -
RT 138.48 122.80 0.03 0.04 4.33 6.73
AM 138.73 122.42 - - - 0.13
KKB 137.69 122.06 0.31 0.01 - -
Total 693.48 615.78 0.77 0.41 4.33 6.86
113
Notes to consolidated Financial Statements (Contd.)
c) Transactions / Balances with relatives of Key Management Personnel As at /Year ended
31st March 2013As at/ Year ended
31st March 2012 Rs. Lakhs Rs. Lakhs
Directors’ Sitting Fees
BMK 0.60 0.80
DK 0.20 0.60
Commission
BMK 2.50 2.50
DK 2.50 2.50
Dividend Paid
BMK 2.18 1.81
DK 0.71 0.59
Amount outstanding at year end
BMK 2.50 2.50
DK 2.50 2.50
d) Transactions / Balances with Associate
Name of Associate Nature of Transactions/Balances
As at/ Year ended31st March 2013
As at/ Year ended31st March 2012
Rs. Lakhs Rs. Lakhs
D1 Subscription in Share Capital during the year - 72.93
Balance of Investments at the year end 484.35 684.35
38. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of
Rs. 5278 lakhs during the year 2009-10 on the Parent Company on account of alleged non-deduction of tax at source
and interest thereon pertaining to the transaction. Th e Parent Company has challenged the said demand before the
appropriate authorities and the matter is pending. Further, the Parent Company has obtained a stay against the said
demand from the Hon’ble High Court of Calcutta. Th e Parent Company has deposited Rs. 700.00 lakhs during the
year 2011-12 with Income Tax Authority under protest (Refer Note 19). In any event, as per the related Share Purchase
Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the
Parent Company.
39. EARNINGS PER EQUITY SHARE :
Year ended31st March 2013
Year ended31st March 2012
a] Numerator used:
Profi t after Taxation and Minority Interest (Rs. Lakhs) 27393.03 28792.09
b] Denominator used
Weighted Average Number of Equity Shares 10,94,55,735 10,94,55,735
c] Face Value of Equity Shares - Rs. 5 5
d] Dilutive Potential Equity Shares - -
e] Earnings per Share [Basic and Diluted] - Rs. 25.03 26.30
40. Revenue Expenditure on Research and Development Rs. 110.43 lakhs (31st March 2012 - Rs. 113.89 lakhs) represent
subscription to Tea Research Association.
41. Adjustment on account of dividend comprises :
(a) Dividend paid during the year 2012-13 by the Parent Company on Equity Share held by its subsidiary Rs. 1624.05
lakhs (2011-12 – Rs. 1353.38 lakhs); and
(b) Dividend paid during the year 2012-13 by the subsidiary to the Parent Company Rs. Nil (2011-12 – Rs. 263.19 lakhs)
114
Notes to consolidated Financial Statements (Contd.)
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. Lakhs
Lease Rent 25.66 8.18
Th e future minimum lease commitment of the Group is as under :
Not later than one year 86.18 8.92
Later than one year and not later than fi ve years 281.25 -
Later than fi ve years - -
42. Lease Commitments:
A non cancellable operating lease agreement had been entered during the year for a period of one year, in connection
with a motor car. Th ere is an option for renewal of lease for further period of one year and purchase of the motor car at
negotiated price.
During the year 2012-13, a tea-manufacturing factory has been taken on non-cancellable operating lease by parent
company for the period from 1st January 2013 to 31st December 2017.
Following amount has been charged in the Consolidated Profi t and Loss Statement on account of lease rental :
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. Lakhs
Income and ExpenditureDepreciation / Amortisation 1048.32 756.49
Foreign Exchange Gain on Derivative - 383.80
As at31st March 2013
As at31st March 2012
Rs. Lakhs Rs. Lakhs
Assets and LiabilitiesInventories 4531.65 3315.90
Accumulated Depreciation 12025.19 12601.57
Provision for Employee Benefi t
- Long term 50.50 42.37
- Short term - 300.52
Foreign Exchange Derivative Assets - 383.80
43. Following items, to the extent indicated, have been measured and recognised on the basis of diff erent accounting
policies applied by certain subsidiary companies, as set out in Note 1 above, as compared to those applied by the Parent
Company. It is not practicable to use uniform accounting policies in preparing the consolidated fi nancial statements. Had
the accounting policies of the Parent Company being applied, the impact thereof on the expenditure for the year and
year-end carrying amounts of assets / liabilities is not ascertainable at this stage.
44. D1 an Associate apply accounting policies relating to the following items which are diff erent from those followed by the
Parent Company :
(a) Depreciation is provided by D1 on written down value method as against straight line method; and
(b) Inventory is valued by D1 on FIFO method as against weighted average method.
It is not considered practicable to quantify the impact of diff erences for making appropriate adjustments in the fi nancial
statements of the aforesaid Associate for the purpose of consolidation.
115
Notes to consolidated Financial Statements (Contd.)
46. Items of Expenditure in the Consolidated Profi t and Loss Statement include reimbursements to and by the Parent
Company.
48. Previous year fi gures have been reclassifi ed to conform to this year’s classifi cation.
Signatures to notes 1 to 48.
45. EXCEPTIONAL ITEM COMPRISES
Year ended31st March 2013
Year ended31st March 2012
Rs. Lakhs Rs. Lakhs
Provision in carrying amount of long term
Investments in :
An associate (2.51) 660.77
A Body Corporate 33.44 -
Loss/(Profi t) on disposal of Investment in :
An associate - 207.42
30.93 868.19
47. Derivative Investments and Unhedged Foreign Currency Exposure of the Parent Company
a) Derivatives outstanding as at the reporting date:-
Particulars Purpose Currency
As at 31st March, 2013 As at 31st March, 2012Amount
in Foreign Currency
Amount in Rs. Lakhs
Amount in Foreign Currency
Amount in Rs. Lakhs
Forward contracts on past
performance
Hedging of foreign
currency receivables
USD 28000000 15201.20 22000000 11193.60
GBP 2000000 1085.80 6000000 4897.20
Currency and Interest Rate
Swap
Hedging of fl oating
interest rate USD 7439062 4038.67 9149410 4655.22
b) Particulars of unhedged foreign currency exposures as at the reporting date.Trade/ Other Receivables USD 333235 180.88 - -
2012-13 2011-12Rs. Lakhs Rs. Lakhs
c) Mark to Market Losses Provided for 802.67 675.22
For PRICE WATERHOUSEFirm Registration Number 301112E For and on behalf of the Board of Directors
Chartered Accountants
Prabal Kr. Sarkar A. Khaitan K. K. Baheti A. Guha SarkarPartner Managing Director Wholetime Director & CFO Company SecretaryMembership Number 52340
Kolkata, 27th May, 2013
116
Statement containing financial information of
Subsidiary Companies
(in terms of General Circular No.2/2011 dated 8th April,2011 issued by the Ministry of Corporate Aff airs)
Name of the Subsidiary Company Borelli Tea Holdings
Phu Ben Tea Company
LimitedLimited Limited Limited
Rwenzori Tea Investments
McLeod Russel
Uganda Limited
Gisovu Tea Company
McLeod Russel Middle
East DMCC
Reporting Currency British
Pound
(GBP)
Vietnamese
Dong
(VND)
Uganda
Shillings
(Ushs)
Uganda
Shillings
(Ushs)
Rwandan
Franc
(RWF)
US
Dollars
(USD)
hcraM ts13no sdne raeY laicnaniF 31st December 31st December 31st December 31st December 31st March
Exchange Rate as on 31.03.2013 82.47000 0.00255 0.02067 0.02067 0.08383 54.25658
Rs. In Lakhs* Rs. In Lakhs* Rs. In Lakhs* Rs. In Lakhs* Rs. In Lakhs* Rs. In Lakhs*
75.92 10.087,1 76.406,8 31.080,7 06.121,2 45.892 latipaC *
)50.781( 08.940,2 04.235,01 19.142,1 )16.696( 82.676,71 sulpruS dna sevreseR *
82.000,1 00.598,4 07.985,32 40.223,8 33.394,5 75.872,52 stessA latoT *
* Total Liabilities(including Shareholders' Fund) 25,278.57 5,493.33 8,322.04 23,589.70 4,895.00 1,000.28
- - - 40.223,8 - 51.501,91 stnemtsevnI tnerruC noN *
73.670,2 56.652,4 91.083,61 - 09.764,6 13.821,1 revonruT *
)75.18( 42.000,2 30.962,6 46.385,2 64.664 62.364,4 noitaxaT erofeb t fiorP *
- 15.325 77.7 - 55.93 20.785 noitaxaT rof noisivorP *
)75.18( 37.674,1 62.162,6 46.385,2 19.624 42.678,3 noitaxaT retfa t fiorP *
* Dividend (Interim/Proposed and provided in
Accounts)
- 99.205 46.385,2 46.385,2 - ##
detinUyrtnuoC
Kingdom
Vietnam Uganda Uganda Rwanda Dubai
e Board of Directors of Borelli Tea Holdings Ltd. has recommended a dividend of GBP 3 per share .
However, as per Accounting Standards in U.K., provision for the same has not been made in their books of accounts.
117
Locations Estates Area Under Tea (Hect.) Saleable Production for 2012-13 (Kgs.)
Bishnauth Dekorai 864.03 1,830,875
Mijicajan 956.37 1,908,228
Monabarie 1143.24 2,965,321
Pertabghur 809.62 1,978,449
Dhunseri Behora 699.16 1,181,502
Bukhial 565.78 1,115,411
Doom Dooma Baghjan 593.13 1,568,915
Bordubi 902.66 1,648,814
Koomsong 707.31 1,465,502
Phillobari 397.78 995,362
Beesakopie/Daimukhia 1249.31 1,477,878
Samdang 920.45 1,108,385
Raidang 974.09 1,680,986
East Boroi Bargang 1012.33 1,919,643
Behali 580.60 2,007,131
Boroi 406.50 1,205,491
Duffl aghur 712.71 1,778,251
Halem 589.80 2,268,254
Nya Gogra 647.28 1,737,373
Jorhat Hunwal 897.52 1,934,093
Mangaldai Attareekhat 537.55 1,685,329
Bhooteachang 614.84 1,279,127
Borengajuli 625.19 1,873,964
Corramore 485.06 1,390,543
Dimakusi 435.04 1,428,132
Paneery 408.29 933,908
Margherita Bogapani 846.70 2,525,851
Dehing 498.73 1,911,462
Dirok 788.16 2,197,910
Margherita 607.94 1,466,074
Namdang 756.13 1,971,494
Particulars of Tea Estates
118
Moran Attabarrie 397.94 818,465
Dirai 674.71 2,150,373
Lepetkatta 436.44 865,680
Moran 616.30 1,594,122
Rajmai 485.52 1,560,547
Sepon 607.76 1,816,166
Th akurbari Addabarie 679.39 1,491,969
Harchurah 452.21 1,430,757
Phulbari 843.84 1,873,540
Rupajuli 384.36 796,985
Tarajulie 481.26 824,672
Tezpore & Gogra 521.72 1,228,415
Tingri Dirial 573.39 1,602,463
Itakhooli 389.62 654,433
Keyhung 620.17 1,330,573
Mahakali 568.96 917,596
Dooars Bhatpara 615.01 721,159
Central Dooars 763.93 1,005,036
Chuapara 664.02 1,007,744
Jainti/Chuniajhora 617.27 983,326
Mathura 683.14 1,099,580
Total 34310.26 78,213,259
Production includes tea made out of inter-estate transfer/purchase of green leaf.
Locations Estates Area Under Tea (Hect.) Saleable Production for 2012-13 (Kgs.)
Particulars of Tea Estates (Contd.)
119
NOTES
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120
NOTES